ITCB Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value)

Outlook: Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) assigned short-term B1 & long-term B1 forecasted stock rating.
Dominant Strategy : Hold
Time series to forecast n: 17 Dec 2022 for (n+4 weeks)
Methodology : Transductive Learning (ML)

Abstract

In this paper, we propose a robust and novel hybrid model for prediction of stock returns. The proposed model is constituted of two linear models: autoregressive moving average model, exponential smoothing model and a non-linear model: recurrent neural network. Training data for recurrent neural network is generated by a new regression model. Recurrent neural network produces satisfactory predictions as compared to linear models. With the goal to further improve the accuracy of predictions, the proposed hybrid prediction model merges predictions obtained from these three prediction based models. (Ticknor, J.L., 2013. A Bayesian regularized artificial neural network for stock market forecasting. Expert systems with applications, 40(14), pp.5501-5506.) We evaluate Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) prediction models with Transductive Learning (ML) and ElasticNet Regression^1,2,3,4 and conclude that the ITCB stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Hold

Key Points

1. What are the most successful trading algorithms?
2. Is it better to buy and sell or hold?
3. Game Theory

ITCB Target Price Prediction Modeling Methodology

We consider Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) Decision Process with Transductive Learning (ML) where A is the set of discrete actions of ITCB 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(ElasticNet Regression)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Transductive Learning (ML)) X S(n):→ (n+4 weeks) $\begin{array}{l}\int r^s\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of ITCB 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?

ITCB Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: ITCB Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value)
Time series to forecast n: 17 Dec 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Hold

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%

Adjusted IFRS* Prediction Methods for Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value)

1. When rebalancing a hedging relationship, an entity shall update its analysis of the sources of hedge ineffectiveness that are expected to affect the hedging relationship during its (remaining) term (see paragraph B6.4.2). The documentation of the hedging relationship shall be updated accordingly.
2. If there is a hedging relationship between a non-derivative monetary asset and a non-derivative monetary liability, changes in the foreign currency component of those financial instruments are presented in profit or loss.
3. Adjusting the hedge ratio by decreasing the volume of the hedging instrument does not affect how the changes in the value of the hedged item are measured. The measurement of the changes in the fair value of the hedging instrument related to the volume that continues to be designated also remains unaffected. However, from the date of rebalancing, the volume by which the hedging instrument was decreased is no longer part of the hedging relationship. For example, if an entity originally hedged the price risk of a commodity using a derivative volume of 100 tonnes as the hedging instrument and reduces that volume by 10 tonnes on rebalancing, a nominal amount of 90 tonnes of the hedging instrument volume would remain (see paragraph B6.5.16 for the consequences for the derivative volume (ie the 10 tonnes) that is no longer a part of the hedging relationship).
4. To the extent that a transfer of a financial asset does not qualify for derecognition, the transferor's contractual rights or obligations related to the transfer are not accounted for separately as derivatives if recognising both the derivative and either the transferred asset or the liability arising from the transfer would result in recognising the same rights or obligations twice. For example, a call option retained by the transferor may prevent a transfer of financial assets from being accounted for as a sale. In that case, the call option is not separately recognised as a derivative asset.

*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

Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) assigned short-term B1 & long-term B1 forecasted stock rating. We evaluate the prediction models Transductive Learning (ML) with ElasticNet Regression^1,2,3,4 and conclude that the ITCB stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Hold

Financial State Forecast for ITCB Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) Options & Futures

Rating	Short-Term	Long-Term Senior
Outlook*	B1	B1
Operational Risk	63	57
Market Risk	81	60
Technical Analysis	62	86
Fundamental Analysis	42	53
Risk Unsystematic	50	39

Prediction Confidence Score

Trust metric by Neural Network: 84 out of 100 with 741 signals.

References

1. Bastani H, Bayati M. 2015. Online decision-making with high-dimensional covariates. Work. Pap., Univ. Penn./ Stanford Grad. School Bus., Philadelphia/Stanford, CA
2. R. Sutton and A. Barto. Reinforcement Learning. The MIT Press, 1998
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. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
5. M. Puterman. Markov Decision Processes: Discrete Stochastic Dynamic Programming. Wiley, New York, 1994.
6. C. Claus and C. Boutilier. The dynamics of reinforcement learning in cooperative multiagent systems. In Proceedings of the Fifteenth National Conference on Artificial Intelligence and Tenth Innovative Applications of Artificial Intelligence Conference, AAAI 98, IAAI 98, July 26-30, 1998, Madison, Wisconsin, USA., pages 746–752, 1998.
7. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40

Frequently Asked Questions

Q: What is the prediction methodology for ITCB stock?
A: ITCB stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and ElasticNet Regression
Q: Is ITCB stock a buy or sell?
A: The dominant strategy among neural network is to Hold ITCB Stock.
Q: Is Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) stock a good investment?
A: The consensus rating for Itau CorpBanca American Depositary Shares (each representing 1500 shares of Common Stock no par value) is Hold and assigned short-term B1 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of ITCB stock?
A: The consensus rating for ITCB is Hold.
Q: What is the prediction period for ITCB stock?
A: The prediction period for ITCB is (n+4 weeks)

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