CPHI Stock: Soars on Strong Earnings

Outlook: China Pharma Holdings Inc. Common Stock is assigned short-term Ba2 & long-term Ba3 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 22 Jun 2023 for 3 Month
Methodology : Inductive Learning (ML)

Summary

China Pharma Holdings Inc. Common Stock prediction model is evaluated with Inductive Learning (ML) and Statistical Hypothesis Testing^1,2,3,4 and it is concluded that the CPHI stock is predictable in the short/long term. Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

Key Points

1. How do you know when a stock will go up or down?
2. Operational Risk
3. Game Theory

CPHI Target Price Prediction Modeling Methodology

We consider China Pharma Holdings Inc. Common Stock Decision Process with Inductive Learning (ML) where A is the set of discrete actions of CPHI 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(Statistical Hypothesis Testing)^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(Inductive Learning (ML)) X S(n):→ 3 Month $\overrightarrow{R}=\left(r_1,r_2,r_3\right)$

n:Time series to forecast

p:Price signals of CPHI stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Inductive Learning (ML)

Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses.

Statistical Hypothesis Testing

Statistical hypothesis testing is a process used to determine whether there is enough evidence to support a claim about a population based on a sample. The process involves making two hypotheses, a null hypothesis and an alternative hypothesis, and then collecting data and using statistical tests to determine which hypothesis is more likely to be true. The null hypothesis is the statement that there is no difference between the population and the sample. The alternative hypothesis is the statement that there is a difference between the population and the sample. The statistical test is used to calculate a p-value, which is the probability of obtaining the observed data or more extreme data if the null hypothesis is true. A p-value of less than 0.05 is typically considered to be statistically significant, which means that there is less than a 5% chance of obtaining the observed data or more extreme data if the null hypothesis is true.

 

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?

CPHI Stock Forecast (Buy or Sell) for 3 Month

Sample Set: Neural Network
Stock/Index: CPHI China Pharma Holdings Inc. Common Stock
Time series to forecast n: 22 Jun 2023 for 3 Month

According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

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 China Pharma Holdings Inc. Common Stock

1. Adjusting the hedge ratio allows an entity to respond to changes in the relationship between the hedging instrument and the hedged item that arise from their underlyings or risk variables. For example, a hedging relationship in which the hedging instrument and the hedged item have different but related underlyings changes in response to a change in the relationship between those two underlyings (for example, different but related reference indices, rates or prices). Hence, rebalancing allows the continuation of a hedging relationship in situations in which the relationship between the hedging instrument and the hedged item chang
2. An entity that first applies these amendments after it first applies this Standard shall apply paragraphs 7.2.32–7.2.34. The entity shall also apply the other transition requirements in this Standard necessary for applying these amendments. For that purpose, references to the date of initial application shall be read as referring to the beginning of the reporting period in which an entity first applies these amendments (date of initial application of these amendments).
3. An entity shall apply the impairment requirements in Section 5.5 retrospectively in accordance with IAS 8 subject to paragraphs 7.2.15 and 7.2.18–7.2.20.
4. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss. However, the entity may transfer the cumulative gain or loss within equity.

*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

China Pharma Holdings Inc. Common Stock is assigned short-term Ba2 & long-term Ba3 estimated rating. China Pharma Holdings Inc. Common Stock prediction model is evaluated with Inductive Learning (ML) and Statistical Hypothesis Testing^1,2,3,4 and it is concluded that the CPHI stock is predictable in the short/long term. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

CPHI China Pharma Holdings Inc. Common Stock Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba2	Ba3
Income Statement	C	C
Balance Sheet	B1	B2
Leverage Ratios	Baa2	B1
Cash Flow	Ba1	Baa2
Rates of Return and Profitability	Baa2	Baa2

*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

Trust metric by Neural Network: 79 out of 100 with 737 signals.

References

1. Friedman JH. 2002. Stochastic gradient boosting. Comput. Stat. Data Anal. 38:367–78
2. Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
3. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
4. Burgess, D. F. (1975), "Duality theory and pitfalls in the specification of technologies," Journal of Econometrics, 3, 105–121.
5. Scott SL. 2010. A modern Bayesian look at the multi-armed bandit. Appl. Stoch. Models Bus. Ind. 26:639–58
6. Athey S, Blei D, Donnelly R, Ruiz F. 2017b. Counterfactual inference for consumer choice across many prod- uct categories. AEA Pap. Proc. 108:64–67
7. Allen, P. G. (1994), "Economic forecasting in agriculture," International Journal of Forecasting, 10, 81–135.

Frequently Asked Questions

Q: What is the prediction methodology for CPHI stock?
A: CPHI stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Statistical Hypothesis Testing
Q: Is CPHI stock a buy or sell?
A: The dominant strategy among neural network is to Buy CPHI Stock.
Q: Is China Pharma Holdings Inc. Common Stock stock a good investment?
A: The consensus rating for China Pharma Holdings Inc. Common Stock is Buy and is assigned short-term Ba2 & long-term Ba3 estimated rating.
Q: What is the consensus rating of CPHI stock?
A: The consensus rating for CPHI is Buy.
Q: What is the prediction period for CPHI stock?
A: The prediction period for CPHI is 3 Month