**Outlook:**DHB Capital Corp. Unit is assigned short-term Ba1 & long-term Ba1 estimated rating.

**Dominant Strategy :**Wait until speculative trend diminishes

**Time series to forecast n: 30 Mar 2023**for (n+3 month)

**Methodology :**Modular Neural Network (DNN Layer)

## Abstract

DHB Capital Corp. Unit prediction model is evaluated with Modular Neural Network (DNN Layer) and Stepwise Regression^{1,2,3,4}and it is concluded that the DHBCU stock is predictable in the short/long term.

**According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Wait until speculative trend diminishes**

## Key Points

- Nash Equilibria
- What are main components of Markov decision process?
- Can we predict stock market using machine learning?

## DHBCU Target Price Prediction Modeling Methodology

We consider DHB Capital Corp. Unit Decision Process with Modular Neural Network (DNN Layer) where A is the set of discrete actions of DHBCU 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(Stepwise Regression)

^{5,6,7}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (DNN Layer)) X S(n):→ (n+3 month) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of DHBCU 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?

## DHBCU Stock Forecast (Buy or Sell) for (n+3 month)

**Sample Set:**Neural Network

**Stock/Index:**DHBCU DHB Capital Corp. Unit

**Time series to forecast n: 30 Mar 2023**for (n+3 month)

**According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Wait until speculative trend diminishes**

**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%**

## IFRS Reconciliation Adjustments for DHB Capital Corp. Unit

- A portfolio of financial assets that is managed and whose performance is evaluated on a fair value basis (as described in paragraph 4.2.2(b)) is neither held to collect contractual cash flows nor held both to collect contractual cash flows and to sell financial assets. The entity is primarily focused on fair value information and uses that information to assess the assets' performance and to make decisions. In addition, a portfolio of financial assets that meets the definition of held for trading is not held to collect contractual cash flows or held both to collect contractual cash flows and to sell financial assets. For such portfolios, the collection of contractual cash flows is only incidental to achieving the business model's objective. Consequently, such portfolios of financial assets must be measured at fair value through profit or loss.
- To calculate the change in the value of the hedged item for the purpose of measuring hedge ineffectiveness, an entity may use a derivative that would have terms that match the critical terms of the hedged item (this is commonly referred to as a 'hypothetical derivative'), and, for example for a hedge of a forecast transaction, would be calibrated using the hedged price (or rate) level. For example, if the hedge was for a two-sided risk at the current market level, the hypothetical derivative would represent a hypothetical forward contract that is calibrated to a value of nil at the time of designation of the hedging relationship. If the hedge was for example for a one-sided risk, the hypothetical derivative would represent the intrinsic value of a hypothetical option that at the time of designation of the hedging relationship is at the money if the hedged price level is the current market level, or out of the money if the hedged price level is above (or, for a hedge of a long position, below) the current market level. Using a hypothetical derivative is one possible way of calculating the change in the value of the hedged item. The hypothetical derivative replicates the hedged item and hence results in the same outcome as if that change in value was determined by a different approach. Hence, using a 'hypothetical derivative' is not a method in its own right but a mathematical expedient that can only be used to calculate the value of the hedged item. Consequently, a 'hypothetical derivative' cannot be used to include features in the value of the hedged item that only exist in the hedging instrument (but not in the hedged item). An example is debt denominated in a foreign currency (irrespective of whether it is fixed-rate or variable-rate debt). When using a hypothetical derivative to calculate the change in the value of such debt or the present value of the cumulative change in its cash flows, the hypothetical derivative cannot simply impute a charge for exchanging different currencies even though actual derivatives under which different currencies are exchanged might include such a charge (for example, cross-currency interest rate swaps).
- If an entity measures a hybrid contract at fair value in accordance with paragraphs 4.1.2A, 4.1.4 or 4.1.5 but the fair value of the hybrid contract had not been measured in comparative reporting periods, the fair value of the hybrid contract in the comparative reporting periods shall be the sum of the fair values of the components (ie the non-derivative host and the embedded derivative) at the end of each comparative reporting period if the entity restates prior periods (see paragraph 7.2.15).
- The methods used to determine whether credit risk has increased significantly on a financial instrument since initial recognition should consider the characteristics of the financial instrument (or group of financial instruments) and the default patterns in the past for comparable financial instruments. Despite the requirement in paragraph 5.5.9, for financial instruments for which default patterns are not concentrated at a specific point during the expected life of the financial instrument, changes in the risk of a default occurring over the next 12 months may be a reasonable approximation of the changes in the lifetime risk of a default occurring. In such cases, an entity may use changes in the risk of a default occurring over the next 12 months to determine whether credit risk has increased significantly since initial recognition, unless circumstances indicate that a lifetime assessment is necessary

*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.

## Conclusions

DHB Capital Corp. Unit is assigned short-term Ba1 & long-term Ba1 estimated rating. DHB Capital Corp. Unit prediction model is evaluated with Modular Neural Network (DNN Layer) and Stepwise Regression^{1,2,3,4} and it is concluded that the DHBCU stock is predictable in the short/long term. ** According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Wait until speculative trend diminishes**

### DHBCU DHB Capital Corp. Unit Financial Analysis*

Rating | Short-Term | Long-Term Senior |
---|---|---|

Outlook* | Ba1 | Ba1 |

Income Statement | C | Baa2 |

Balance Sheet | Caa2 | B3 |

Leverage Ratios | Ba2 | Baa2 |

Cash Flow | Ba3 | Ba2 |

Rates of Return and Profitability | Caa2 | Caa2 |

*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?

### Prediction Confidence Score

## References

- Chen, C. L. Liu (1993), "Joint estimation of model parameters and outlier effects in time series," Journal of the American Statistical Association, 88, 284–297.
- Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
- K. Boda, J. Filar, Y. Lin, and L. Spanjers. Stochastic target hitting time and the problem of early retirement. Automatic Control, IEEE Transactions on, 49(3):409–419, 2004
- N. B ̈auerle and A. Mundt. Dynamic mean-risk optimization in a binomial model. Mathematical Methods of Operations Research, 70(2):219–239, 2009.
- Bierens HJ. 1987. Kernel estimators of regression functions. In Advances in Econometrics: Fifth World Congress, Vol. 1, ed. TF Bewley, pp. 99–144. Cambridge, UK: Cambridge Univ. Press
- Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
- 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

## Frequently Asked Questions

Q: What is the prediction methodology for DHBCU stock?A: DHBCU stock prediction methodology: We evaluate the prediction models Modular Neural Network (DNN Layer) and Stepwise Regression

Q: Is DHBCU stock a buy or sell?

A: The dominant strategy among neural network is to Wait until speculative trend diminishes DHBCU Stock.

Q: Is DHB Capital Corp. Unit stock a good investment?

A: The consensus rating for DHB Capital Corp. Unit is Wait until speculative trend diminishes and is assigned short-term Ba1 & long-term Ba1 estimated rating.

Q: What is the consensus rating of DHBCU stock?

A: The consensus rating for DHBCU is Wait until speculative trend diminishes.

Q: What is the prediction period for DHBCU stock?

A: The prediction period for DHBCU is (n+3 month)