Eastman Chemical Company (EMN)
Eastman Chemical Company is an American company primarily involved in the chemical industry. Once a subsidiary of Kodak, today it is an independent global specialty materials company that produces a broad range of advanced materials, chemicals and fibers for everyday purposes. The company is headquartered in Kingsport, Tennessee.
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 12.69% per annum.
- EMN price at the close of May 8, 2024 was $100.76 and was higher than the top border of the primary price channel by $17.55 (21.09%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 11.40% per annum.
- EMN price at the close of May 8, 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 EMN 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: January 6, 2021
End date: December 6, 2023
a = 4.9278
b = -0.0004
s = 0.0862
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -12.69%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0862) – 1
= 41.14%
January 6, 2021 calculations
Top border of price channel:
Exp(Y419)
= Exp(a + b × X419 + 2 × s)
= Exp(a + b × 608 + 2 × s)
= Exp(4.9278 + -0.0004 × 608 + 2 × 0.0862)
= Exp(4.8741)
= $130.86
Bottom border of price channel:
Exp(Y419)
= Exp(a + b × X419 – 2 × s)
= Exp(a + b × 608 – 2 × s)
= Exp(4.9278 + -0.0004 × 608 – 2 × 0.0862)
= Exp(4.5295)
= $92.71
December 6, 2023 calculations
Top border of price channel:
Exp(Y1,153)
= Exp(a + b × X1,153 + 2 × s)
= Exp(a + b × 1,672 + 2 × s)
= Exp(4.9278 + -0.0004 × 1,672 + 2 × 0.0862)
= Exp(4.4786)
= $88.11
Bottom border of price channel:
Exp(Y1,153)
= Exp(a + b × X1,153 – 2 × s)
= Exp(a + b × 1,672 – 2 × s)
= Exp(4.9278 + -0.0004 × 1,672 – 2 × 0.0862)
= Exp(4.1340)
= $62.43
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 12.69% per annum.
- EMN price at the close of May 8, 2024 was $100.76 and was higher than the top border of the primary price channel by $17.55 (21.09%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 13, 2022
End date: May 8, 2024
a = 3.9451
b = 0.0003
s = 0.0698
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 11.40%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0698) – 1
= 32.22%
September 13, 2022 calculations
Top border of price channel:
Exp(Y843)
= Exp(a + b × X843 + 2 × s)
= Exp(a + b × 1,223 + 2 × s)
= Exp(3.9451 + 0.0003 × 1,223 + 2 × 0.0698)
= Exp(4.4466)
= $85.33
Bottom border of price channel:
Exp(Y843)
= Exp(a + b × X843 – 2 × s)
= Exp(a + b × 1,223 – 2 × s)
= Exp(3.9451 + 0.0003 × 1,223 – 2 × 0.0698)
= Exp(4.1673)
= $64.54
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.9451 + 0.0003 × 1,826 + 2 × 0.0698)
= Exp(4.6249)
= $102.00
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9451 + 0.0003 × 1,826 – 2 × 0.0698)
= Exp(4.3456)
= $77.14
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 11.40% per annum.
- EMN price at the close of May 8, 2024 was inside the secondary price channel.