Where Will ERII Stock Be in 16 Weeks?

Outlook: Energy Recovery Inc. Common Stock is assigned short-term B3 & long-term Ba2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Sell
Time series to forecast n: for Weeks²
Methodology : Active Learning (ML)
Hypothesis Testing : Wilcoxon Sign-Rank Test
Surveillance : Major exchange and OTC

¹The accuracy of the model is being monitored on a regular basis.(15-minute period)

²Time series is updated based on short-term trends.

Summary

Energy Recovery Inc. Common Stock prediction model is evaluated with Active Learning (ML) and Wilcoxon Sign-Rank Test^1,2,3,4 and it is concluded that the ERII stock is predictable in the short/long term. Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.⁵ According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Sell

Key Points

1. Active Learning (ML) for ERII stock price prediction process.
2. Wilcoxon Sign-Rank Test
3. What are buy sell or hold recommendations?
4. Reaction Function
5. How do you know when a stock will go up or down?

ERII Stock Price Forecast

We consider Energy Recovery Inc. Common Stock Decision Process with Active Learning (ML) where A is the set of discrete actions of ERII stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^1,2,3,4

Sample Set: Neural Network
Stock/Index: ERII Energy Recovery Inc. Common Stock
Time series to forecast: 16 Weeks

According to price forecasts, the dominant strategy among neural network is: Sell

F(Wilcoxon Sign-Rank Test)^6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Active Learning (ML)) X S(n):→ 16 Weeks $\sum _{i=1}^n\left(r_i\right)$

n:Time series to forecast

p:Price signals of ERII stock

j:Nash equilibria (Neural Network)

k:Dominated move of ERII stock holders

a:Best response for ERII target price

Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.⁵ The Wilcoxon rank-sum test, also known as the Mann-Whitney U test, is a non-parametric test that is used to compare the medians of two independent samples. It is a rank-based test, which means that it does not assume that the data is normally distributed. The Wilcoxon rank-sum test is calculated by first ranking the data from both samples, and then finding the sum of the ranks for one of the samples. The Wilcoxon rank-sum test statistic is then calculated by subtracting the sum of the ranks for one sample from the sum of the ranks for the other sample. The p-value for the Wilcoxon rank-sum test is calculated using a table of critical values. The p-value is the probability of obtaining a test statistic at least as extreme as the one observed, assuming that the null hypothesis is true.^6,7

 

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How do PredictiveAI algorithms actually work?

ERII Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

Financial Data Adjustments for Active Learning (ML) based ERII Stock Prediction Model

1. Adjusting the hedge ratio allows an entity to respond to changes in the relationship between the hedging instrument and the hedged item that arise from their underlyings or risk variables. For example, a hedging relationship in which the hedging instrument and the hedged item have different but related underlyings changes in response to a change in the relationship between those two underlyings (for example, different but related reference indices, rates or prices). Hence, rebalancing allows the continuation of a hedging relationship in situations in which the relationship between the hedging instrument and the hedged item chang
2. When using historical credit loss experience in estimating expected credit losses, it is important that information about historical credit loss rates is applied to groups that are defined in a manner that is consistent with the groups for which the historical credit loss rates were observed. Consequently, the method used shall enable each group of financial assets to be associated with information about past credit loss experience in groups of financial assets with similar risk characteristics and with relevant observable data that reflects current conditions.
3. An entity's documentation of the hedging relationship includes how it will assess the hedge effectiveness requirements, including the method or methods used. The documentation of the hedging relationship shall be updated for any changes to the methods (see paragraph B6.4.17).
4. For the purposes of the transition provisions in paragraphs 7.2.1, 7.2.3–7.2.28 and 7.3.2, the date of initial application is the date when an entity first applies those requirements of this Standard and must be the beginning of a reporting period after the issue of this Standard. Depending on the entity's chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

ERII Energy Recovery Inc. Common Stock Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	B3	Ba2
Income Statement	Baa2	Baa2
Balance Sheet	Caa2	B3
Leverage Ratios	Caa2	Ba3
Cash Flow	C	B2
Rates of Return and Profitability	C	Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

References

1. Imbens G, Wooldridge J. 2009. Recent developments in the econometrics of program evaluation. J. Econ. Lit. 47:5–86
2. Clements, M. P. D. F. Hendry (1995), "Forecasting in cointegrated systems," Journal of Applied Econometrics, 10, 127–146.
3. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier
4. E. van der Pol and F. A. Oliehoek. Coordinated deep reinforcement learners for traffic light control. NIPS Workshop on Learning, Inference and Control of Multi-Agent Systems, 2016.
5. A. Y. Ng, D. Harada, and S. J. Russell. Policy invariance under reward transformations: Theory and application to reward shaping. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 278–287, 1999.
6. Athey S, Wager S. 2017. Efficient policy learning. arXiv:1702.02896 [math.ST]
7. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press

Frequently Asked Questions

Q: Is ERII stock expected to rise?
A: ERII stock prediction model is evaluated with Active Learning (ML) and Wilcoxon Sign-Rank Test and it is concluded that dominant strategy for ERII stock is Sell
Q: Is ERII stock a buy or sell?
A: The dominant strategy among neural network is to Sell ERII Stock.
Q: Is Energy Recovery Inc. Common Stock stock a good investment?
A: The consensus rating for Energy Recovery Inc. Common Stock is Sell and is assigned short-term B3 & long-term Ba2 estimated rating.
Q: What is the consensus rating of ERII stock?
A: The consensus rating for ERII is Sell.
Q: What is the forecast for ERII stock?
A: ERII target price forecast: Sell