Encompass Health Corp (EHC)
Encompass Health Corporation offers in-home and post-acute health care services in the United States. The company is headquartered in Birmingham, Alabama.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 81.34% per annum.
- EHC price at the close of May 17, 2024 was $85.45 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 189.18% per annum.
- EHC price at the close of May 17, 2024 was inside the secondary price channel.
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 EHC 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: October 23, 2023
End date: May 17, 2024
a = 1.4737
b = 0.0016
s = 0.0164
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0016) – 1
= 81.34%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0164) – 1
= 6.79%
October 23, 2023 calculations
Top border of price channel:
Exp(Y1,115)
= Exp(a + b × X1,115 + 2 × s)
= Exp(a + b × 1,617 + 2 × s)
= Exp(1.4737 + 0.0016 × 1,617 + 2 × 0.0164)
= Exp(4.1435)
= $63.02
Bottom border of price channel:
Exp(Y1,115)
= Exp(a + b × X1,115 – 2 × s)
= Exp(a + b × 1,617 – 2 × s)
= Exp(1.4737 + 0.0016 × 1,617 – 2 × 0.0164)
= Exp(4.0778)
= $59.02
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(1.4737 + 0.0016 × 1,824 + 2 × 0.0164)
= Exp(4.4811)
= $88.33
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.4737 + 0.0016 × 1,824 – 2 × 0.0164)
= Exp(4.4154)
= $82.71
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 81.34% per annum.
- EHC price at the close of May 17, 2024 was $85.45 and was inside the primary price channel.
Secondary Trend
Start date: April 16, 2024
End date: May 17, 2024
a = -0.8373
b = 0.0029
s = 0.0112
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0029) – 1
= 189.18%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0112) – 1
= 4.58%
April 16, 2024 calculations
Top border of price channel:
Exp(Y1,235)
= Exp(a + b × X1,235 + 2 × s)
= Exp(a + b × 1,793 + 2 × s)
= Exp(-0.8373 + 0.0029 × 1,793 + 2 × 0.0112)
= Exp(4.4014)
= $81.56
Bottom border of price channel:
Exp(Y1,235)
= Exp(a + b × X1,235 – 2 × s)
= Exp(a + b × 1,793 – 2 × s)
= Exp(-0.8373 + 0.0029 × 1,793 – 2 × 0.0112)
= Exp(4.3567)
= $78.00
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(-0.8373 + 0.0029 × 1,824 + 2 × 0.0112)
= Exp(4.4916)
= $89.26
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-0.8373 + 0.0029 × 1,824 – 2 × 0.0112)
= Exp(4.4468)
= $85.36
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 189.18% per annum.
- EHC price at the close of May 17, 2024 was inside the secondary price channel.