HARLAND & WOLFF GROUP HOLDINGS PLC Research Report

## Summary

Prediction of the trend of the stock market is very crucial. If someone has robust forecasting tools, then he/she will increase the return on investment and can get rich easily and quickly. Because there are a lot of factors that can influence the stock market, the stock forecasting problem has always been very complicated. Support Vector Regression is a tool from machine learning that can build a regression model on the historical time series data in the purpose of predicting the future trend of the stock price. We evaluate HARLAND & WOLFF GROUP HOLDINGS PLC prediction models with Active Learning (ML) and Multiple Regression1,2,3,4 and conclude that the LON:HARL stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:HARL stock.

## Key Points

1. What is the use of Markov decision process?
2. Operational Risk
3. Short/Long Term Stocks

## LON:HARL Target Price Prediction Modeling Methodology

We consider HARLAND & WOLFF GROUP HOLDINGS PLC Stock Decision Process with Active Learning (ML) where A is the set of discrete actions of LON:HARL 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

F(Multiple Regression)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Active Learning (ML)) X S(n):→ (n+4 weeks) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of LON:HARL stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

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

How do AC Investment Research machine learning (predictive) algorithms actually work?

## LON:HARL Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: LON:HARL HARLAND & WOLFF GROUP HOLDINGS PLC
Time series to forecast n: 23 Nov 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:HARL stock.

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 (Yellow to Green): *Technical Analysis%

## Adjusted IFRS* Prediction Methods for HARLAND & WOLFF GROUP HOLDINGS PLC

1. For example, an entity hedges an exposure to Foreign Currency A using a currency derivative that references Foreign Currency B and Foreign Currencies A and B are pegged (ie their exchange rate is maintained within a band or at an exchange rate set by a central bank or other authority). If the exchange rate between Foreign Currency A and Foreign Currency B were changed (ie a new band or rate was set), rebalancing the hedging relationship to reflect the new exchange rate would ensure that the hedging relationship would continue to meet the hedge effectiveness requirement for the hedge ratio in the new circumstances. In contrast, if there was a default on the currency derivative, changing the hedge ratio could not ensure that the hedging relationship would continue to meet that hedge effectiveness requirement. Hence, rebalancing does not facilitate the continuation of a hedging relationship in situations in which the relationship between the hedging instrument and the hedged item changes in a way that cannot be compensated for by adjusting the hedge ratio
2. For example, an entity hedges an exposure to Foreign Currency A using a currency derivative that references Foreign Currency B and Foreign Currencies A and B are pegged (ie their exchange rate is maintained within a band or at an exchange rate set by a central bank or other authority). If the exchange rate between Foreign Currency A and Foreign Currency B were changed (ie a new band or rate was set), rebalancing the hedging relationship to reflect the new exchange rate would ensure that the hedging relationship would continue to meet the hedge effectiveness requirement for the hedge ratio in the new circumstances. In contrast, if there was a default on the currency derivative, changing the hedge ratio could not ensure that the hedging relationship would continue to meet that hedge effectiveness requirement. Hence, rebalancing does not facilitate the continuation of a hedging relationship in situations in which the relationship between the hedging instrument and the hedged item changes in a way that cannot be compensated for by adjusting the hedge ratio
3. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss. If such a mismatch would not be created or enlarged, the entity is required to present the effects of changes in the liability's credit risk in other comprehensive income.
4. The requirement that an economic relationship exists means that the hedging instrument and the hedged item have values that generally move in the opposite direction because of the same risk, which is the hedged risk. Hence, there must be an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in response to movements in either the same underlying or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged (for example, Brent and WTI crude oil).

*International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

## Conclusions

HARLAND & WOLFF GROUP HOLDINGS PLC assigned short-term B3 & long-term B2 forecasted stock rating. We evaluate the prediction models Active Learning (ML) with Multiple Regression1,2,3,4 and conclude that the LON:HARL stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:HARL stock.

### Financial State Forecast for LON:HARL HARLAND & WOLFF GROUP HOLDINGS PLC Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3B2
Operational Risk 4274
Market Risk7939
Technical Analysis3341
Fundamental Analysis5836
Risk Unsystematic4353

### Prediction Confidence Score

Trust metric by Neural Network: 78 out of 100 with 651 signals.

## References

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Frequently Asked QuestionsQ: What is the prediction methodology for LON:HARL stock?
A: LON:HARL stock prediction methodology: We evaluate the prediction models Active Learning (ML) and Multiple Regression
Q: Is LON:HARL stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:HARL Stock.
Q: Is HARLAND & WOLFF GROUP HOLDINGS PLC stock a good investment?
A: The consensus rating for HARLAND & WOLFF GROUP HOLDINGS PLC is Hold and assigned short-term B3 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of LON:HARL stock?
A: The consensus rating for LON:HARL is Hold.
Q: What is the prediction period for LON:HARL stock?
A: The prediction period for LON:HARL is (n+4 weeks)