HES Stock: Looking for safe investment?

Outlook: Hess Corporation Common Stock is assigned short-term B2 & long-term Ba2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Buy
Time series to forecast n: for Weeks²
Methodology : Transfer Learning (ML)
Hypothesis Testing : Beta
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

Hess Corporation Common Stock prediction model is evaluated with Transfer Learning (ML) and Beta^1,2,3,4 and it is concluded that the HES stock is predictable in the short/long term. Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task.⁵ According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Buy

Key Points

1. Transfer Learning (ML) for HES stock price prediction process.
2. Beta
3. Understanding Buy, Sell, and Hold Ratings
4. Buy, Sell and Hold Signals
5. How do you decide buy or sell a stock?

HES Stock Price Forecast

We consider Hess Corporation Common Stock Decision Process with Transfer Learning (ML) where A is the set of discrete actions of HES 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: HES Hess Corporation Common Stock
Time series to forecast: 16 Weeks

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

F(Beta)^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(Transfer Learning (ML)) X S(n):→ 16 Weeks $\overrightarrow{R}=\left(r_1,r_2,r_3\right)$

n:Time series to forecast

p:Price signals of HES stock

j:Nash equilibria (Neural Network)

k:Dominated move of HES stock holders

a:Best response for HES target price

Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task.⁵ In statistics, beta (β) is a measure of the strength of the relationship between two variables. It is calculated as the slope of the line of best fit in a regression analysis. Beta can range from -1 to 1, with a value of 0 indicating no relationship between the two variables. A positive beta indicates that as one variable increases, the other variable also increases. A negative beta indicates that as one variable increases, the other variable decreases. For example, a study might find that there is a positive relationship between height and weight. This means that taller people tend to weigh more. The beta coefficient for this relationship would be positive.^6,7

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

HES 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 Transfer Learning (ML) based HES Stock Prediction Model

1. Changes in market conditions that give rise to market risk include changes in a benchmark interest rate, the price of another entity's financial instrument, a commodity price, a foreign exchange rate or an index of prices or rates.
2. When an entity separates the foreign currency basis spread from a financial instrument and excludes it from the designation of that financial instrument as the hedging instrument (see paragraph 6.2.4(b)), the application guidance in paragraphs B6.5.34–B6.5.38 applies to the foreign currency basis spread in the same manner as it is applied to the forward element of a forward contract.
3. If the group of items does have offsetting risk positions (for example, a group of sales and expenses denominated in a foreign currency hedged together for foreign currency risk) then an entity shall present the hedging gains or losses in a separate line item in the statement of profit or loss and other comprehensive income. Consider, for example, a hedge of the foreign currency risk of a net position of foreign currency sales of FC100 and foreign currency expenses of FC80 using a forward exchange contract for FC20. The gain or loss on the forward exchange contract that is reclassified from the cash flow hedge reserve to profit or loss (when the net position affects profit or loss) shall be presented in a separate line item from the hedged sales and expenses. Moreover, if the sales occur in an earlier period than the expenses, the sales revenue is still measured at the spot exchange rate in accordance with IAS 21. The related hedging gain or loss is presented in a separate line item, so that profit or loss reflects the effect of hedging the net position, with a corresponding adjustment to the cash flow hedge reserve. When the hedged expenses affect profit or loss in a later period, the hedging gain or loss previously recognised in the cash flow hedge reserve on the sales is reclassified to profit or loss and presented as a separate line item from those that include the hedged expenses, which are measured at the spot exchange rate in accordance with IAS 21.
4. An entity shall apply Prepayment Features with Negative Compensation (Amendments to IFRS 9) retrospectively in accordance with IAS 8, except as specified in paragraphs 7.2.30–7.2.34

*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.

HES Hess Corporation Common Stock Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	B2	Ba2
Income Statement	C	B3
Balance Sheet	Ba3	Baa2
Leverage Ratios	B1	B2
Cash Flow	Baa2	Baa2
Rates of Return and Profitability	Caa2	Ba3

*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. Hoerl AE, Kennard RW. 1970. Ridge regression: biased estimation for nonorthogonal problems. Technometrics 12:55–67
2. Pennington J, Socher R, Manning CD. 2014. GloVe: global vectors for word representation. In Proceedings of the 2014 Conference on Empirical Methods on Natural Language Processing, pp. 1532–43. New York: Assoc. Comput. Linguist.
3. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
4. Akgiray, V. (1989), "Conditional heteroscedasticity in time series of stock returns: Evidence and forecasts," Journal of Business, 62, 55–80.
5. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
6. L. Panait and S. Luke. Cooperative multi-agent learning: The state of the art. Autonomous Agents and Multi-Agent Systems, 11(3):387–434, 2005.
7. A. K. Agogino and K. Tumer. Analyzing and visualizing multiagent rewards in dynamic and stochastic environments. Journal of Autonomous Agents and Multi-Agent Systems, 17(2):320–338, 2008

Frequently Asked Questions

Q: Is HES stock expected to rise?
A: HES stock prediction model is evaluated with Transfer Learning (ML) and Beta and it is concluded that dominant strategy for HES stock is Buy
Q: Is HES stock a buy or sell?
A: The dominant strategy among neural network is to Buy HES Stock.
Q: Is Hess Corporation Common Stock stock a good investment?
A: The consensus rating for Hess Corporation Common Stock is Buy and is assigned short-term B2 & long-term Ba2 estimated rating.
Q: What is the consensus rating of HES stock?
A: The consensus rating for HES is Buy.
Q: What is the forecast for HES stock?
A: HES target price forecast: Buy