RDVT Stock: A Sinking Ship?

Outlook: Red Violet Inc. Common Stock is assigned short-term B3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Sell
Time series to forecast n: for Weeks²
Methodology : Modular Neural Network (Speculative Sentiment Analysis)
Hypothesis Testing : Linear Regression
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

Red Violet Inc. Common Stock prediction model is evaluated with Modular Neural Network (Speculative Sentiment Analysis) and Linear Regression^1,2,3,4 and it is concluded that the RDVT stock is predictable in the short/long term. A modular neural network (MNN) is a type of artificial neural network that can be used for speculative sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of speculative sentiment analysis, MNNs can be used to identify the sentiment of people who are speculating about the future value of an asset, such as a stock or a cryptocurrency. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising.⁵ According to price forecasts for 3 Month period, the dominant strategy among neural network is: Sell

Key Points

1. Modular Neural Network (Speculative Sentiment Analysis) for RDVT stock price prediction process.
2. Linear Regression
3. Market Risk
4. Is it better to buy and sell or hold?
5. How accurate is machine learning in stock market?

RDVT Stock Price Forecast

We consider Red Violet Inc. Common Stock Decision Process with Modular Neural Network (Speculative Sentiment Analysis) where A is the set of discrete actions of RDVT 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: RDVT Red Violet Inc. Common Stock
Time series to forecast: 3 Month

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

F(Linear Regression)^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(Modular Neural Network (Speculative Sentiment Analysis)) X S(n):→ 3 Month $\begin{array}{l}\int r^s\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of RDVT stock

j:Nash equilibria (Neural Network)

k:Dominated move of RDVT stock holders

a:Best response for RDVT target price

A modular neural network (MNN) is a type of artificial neural network that can be used for speculative sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of speculative sentiment analysis, MNNs can be used to identify the sentiment of people who are speculating about the future value of an asset, such as a stock or a cryptocurrency. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising.⁵ In statistics, linear regression is a method for estimating the relationship between a dependent variable and one or more independent variables. The dependent variable is the variable that is being predicted, and the independent variables are the variables that are used to predict the dependent variable. Linear regression assumes that the relationship between the dependent variable and the independent variables is linear. This means that the dependent variable can be represented as a straight line function of the independent variables.^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?

RDVT 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 Modular Neural Network (Speculative Sentiment Analysis) based RDVT Stock Prediction Model

1. When an entity, consistent with its hedge documentation, frequently resets (ie discontinues and restarts) a hedging relationship because both the hedging instrument and the hedged item frequently change (ie the entity uses a dynamic process in which both the hedged items and the hedging instruments used to manage that exposure do not remain the same for long), the entity shall apply the requirement in paragraphs 6.3.7(a) and B6.3.8—that the risk component is separately identifiable—only when it initially designates a hedged item in that hedging relationship. A hedged item that has been assessed at the time of its initial designation in the hedging relationship, whether it was at the time of the hedge inception or subsequently, is not reassessed at any subsequent redesignation in the same hedging relationship.
2. However, in some cases, the time value of money element may be modified (ie imperfect). That would be the case, for example, if a financial asset's interest rate is periodically reset but the frequency of that reset does not match the tenor of the interest rate (for example, the interest rate resets every month to a one-year rate) or if a financial asset's interest rate is periodically reset to an average of particular short- and long-term interest rates. In such cases, an entity must assess the modification to determine whether the contractual cash flows represent solely payments of principal and interest on the principal amount outstanding. In some circumstances, the entity may be able to make that determination by performing a qualitative assessment of the time value of money element whereas, in other circumstances, it may be necessary to perform a quantitative assessment.
3. Although the objective of an entity's business model may be to hold financial assets in order to collect contractual cash flows, the entity need not hold all of those instruments until maturity. Thus an entity's business model can be to hold financial assets to collect contractual cash flows even when sales of financial assets occur or are expected to occur in the future.
4. In the reporting period that includes the date of initial application of these amendments, an entity is not required to present the quantitative information required by paragraph 28(f) of IAS 8.

*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.

RDVT Red Violet Inc. Common Stock Financial Analysis*

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

*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. R. Howard and J. Matheson. Risk sensitive Markov decision processes. Management Science, 18(7):356– 369, 1972
2. S. Bhatnagar, H. Prasad, and L. Prashanth. Stochastic recursive algorithms for optimization, volume 434. Springer, 2013
3. Abadie A, Diamond A, Hainmueller J. 2010. Synthetic control methods for comparative case studies: estimat- ing the effect of California's tobacco control program. J. Am. Stat. Assoc. 105:493–505
4. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
5. A. Tamar, Y. Glassner, and S. Mannor. Policy gradients beyond expectations: Conditional value-at-risk. In AAAI, 2015
6. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
7. M. Puterman. Markov Decision Processes: Discrete Stochastic Dynamic Programming. Wiley, New York, 1994.

Frequently Asked Questions

Q: Is RDVT stock expected to rise?
A: RDVT stock prediction model is evaluated with Modular Neural Network (Speculative Sentiment Analysis) and Linear Regression and it is concluded that dominant strategy for RDVT stock is Sell
Q: Is RDVT stock a buy or sell?
A: The dominant strategy among neural network is to Sell RDVT Stock.
Q: Is Red Violet Inc. Common Stock stock a good investment?
A: The consensus rating for Red Violet Inc. Common Stock is Sell and is assigned short-term B3 & long-term B1 estimated rating.
Q: What is the consensus rating of RDVT stock?
A: The consensus rating for RDVT is Sell.
Q: What is the forecast for RDVT stock?
A: RDVT target price forecast: Sell