# Equity Residential (EQR)

Equity Residential is a publicly traded real estate investment trust that invests in apartments.

## 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 39.32% per annum.
• EQR price at the close of August 13, 2024 was \$71.15 and was inside the primary price channel.
• The secondary trend is increasing.
• The growth rate of the secondary trend is 68.16% per annum.
• EQR price at the close of August 13, 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 EQR 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 20, 2023
End date: August 13, 2024

a = 2.5948

b = 0.0009

s = 0.0253

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 39.32%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0253) – 1
= 10.65%

#### October 20, 2023 calculations

Top border of price channel:

Exp(Y1,054)
= Exp(a + b × X1,054 + 2 × s)
= Exp(a + b × 1,528 + 2 × s)
= Exp(2.5948 + 0.0009 × 1,528 + 2 × 0.0253)
= Exp(4.0334)
= \$56.45

Bottom border of price channel:

Exp(Y1,054)
= Exp(a + b × X1,054 – 2 × s)
= Exp(a + b × 1,528 – 2 × s)
= Exp(2.5948 + 0.0009 × 1,528 – 2 × 0.0253)
= Exp(3.9322)
= \$51.02

#### August 13, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.5948 + 0.0009 × 1,826 + 2 × 0.0253)
= Exp(4.3041)
= \$74.01

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.5948 + 0.0009 × 1,826 – 2 × 0.0253)
= Exp(4.2029)
= \$66.88

#### Description

• The primary trend is increasing.
• The growth rate of the primary trend is 39.32% per annum.
• EQR price at the close of August 13, 2024 was \$71.15 and was inside the primary price channel.

### Secondary Trend

Start date: May 28, 2024
End date: August 13, 2024

a = 1.6729

b = 0.0014

s = 0.0121

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 68.16%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0121) – 1
= 4.95%

#### May 28, 2024 calculations

Top border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,749 + 2 × s)
= Exp(1.6729 + 0.0014 × 1,749 + 2 × 0.0121)
= Exp(4.1874)
= \$65.85

Bottom border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,749 – 2 × s)
= Exp(1.6729 + 0.0014 × 1,749 – 2 × 0.0121)
= Exp(4.1392)
= \$62.75

#### August 13, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(1.6729 + 0.0014 × 1,826 + 2 × 0.0121)
= Exp(4.2971)
= \$73.49

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.6729 + 0.0014 × 1,826 – 2 × 0.0121)
= Exp(4.2488)
= \$70.02

#### Description

• The secondary trend is increasing.
• The growth rate of the secondary trend is 68.16% per annum.
• EQR price at the close of August 13, 2024 was inside the secondary price channel.