Stock Price Trends

CF Industries Holdings Inc (CF)

CF Industries Holdings, Inc. is a North American manufacturer and distributor of agricultural fertilizers, based in Deerfield, Illinois.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 11.45% per annum.
  • CF price at the close of May 17, 2024 was $76.22 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.62% per annum.
  • CF price at the close of May 17, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of CF price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: March 3, 2022
End date: May 17, 2024

a = 4.8892

b = -0.0003

s = 0.1039

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1039) – 1
= 51.54%

March 3, 2022 calculations

Top border of price channel:

Exp(Y703)
= Exp(a + b × X703 + 2 × s)
= Exp(a + b × 1,018 + 2 × s)
= Exp(4.8892 + -0.0003 × 1,018 + 2 × 0.1039)
= Exp(4.7578)
= $116.49

Bottom border of price channel:

Exp(Y703)
= Exp(a + b × X703 – 2 × s)
= Exp(a + b × 1,018 – 2 × s)
= Exp(4.8892 + -0.0003 × 1,018 – 2 × 0.1039)
= Exp(4.3421)
= $76.87

May 17, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.8892 + -0.0003 × 1,824 + 2 × 0.1039)
= Exp(4.4893)
= $89.06

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.8892 + -0.0003 × 1,824 – 2 × 0.1039)
= Exp(4.0736)
= $58.77

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 11.45% per annum.
  • CF price at the close of May 17, 2024 was $76.22 and was inside the primary price channel.

Secondary Trend

Start date: March 13, 2023
End date: May 17, 2024

a = 3.7218

b = 0.0004

s = 0.0607

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.62%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0607) – 1
= 27.50%

March 13, 2023 calculations

Top border of price channel:

Exp(Y960)
= Exp(a + b × X960 + 2 × s)
= Exp(a + b × 1,393 + 2 × s)
= Exp(3.7218 + 0.0004 × 1,393 + 2 × 0.0607)
= Exp(4.3642)
= $78.58

Bottom border of price channel:

Exp(Y960)
= Exp(a + b × X960 – 2 × s)
= Exp(a + b × 1,393 – 2 × s)
= Exp(3.7218 + 0.0004 × 1,393 – 2 × 0.0607)
= Exp(4.1212)
= $61.63

May 17, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.7218 + 0.0004 × 1,824 + 2 × 0.0607)
= Exp(4.5253)
= $92.33

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.7218 + 0.0004 × 1,824 – 2 × 0.0607)
= Exp(4.2824)
= $72.41

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.62% per annum.
  • CF price at the close of May 17, 2024 was inside the secondary price channel.