Nokia Stock Prediction: An algorithmic Perspective

Nokia Stock Prediction

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First has had success in predicting the Finnish multinational telecommunications company, Nokia (NOK), stock prices in the past. Back in September 2013, I Know First released a bullish article concerning NOK stock. Since then, Nokia share prices have increased by a staggering 72%.

More recently, I Know First published a bullish article on Nokia Corporation, the Finnish multinational telecommunications company, on Seeking Alpha. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts from July 2nd 2015 for Nokia Corporation are included.

Nokia Stock Predictions

 

Nokia stock has a strong, bullish signal for both time frames, indicating that the stock is currently undervalued. Most notably in the year-long forecast, a strong signal of 29.72 and a predictability rating of 0.33 indicate that the stock price will rebound and continue climbing in the long-term. The algorithm correlates with the fundamental analysis which argues that, due to greater inroads into the Indian market and Nokia about to re-enter the mobile phone market, the stock price is currently at a level where investors should start buying for long-term investments.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Nokia Corporation. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.