East West Bancorp Inc (EWBC)
East West Bancorp, Inc. is the banking holding company for East West Bank providing a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. The company is headquartered in Pasadena, California.
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 11.23% per annum.
- EWBC price at the close of July 25, 2024 was $87.01 and was higher than the top border of the primary price channel by $23.89 (37.84%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 53.56% per annum.
- EWBC price at the close of July 25, 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 EWBC 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: February 8, 2021
End date: November 30, 2023
a = 4.5214
b = -0.0003
s = 0.1098
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.23%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1098) – 1
= 55.17%
February 8, 2021 calculations
Top border of price channel:
Exp(Y387)
= Exp(a + b × X387 + 2 × s)
= Exp(a + b × 563 + 2 × s)
= Exp(4.5214 + -0.0003 × 563 + 2 × 0.1098)
= Exp(4.5573)
= $95.33
Bottom border of price channel:
Exp(Y387)
= Exp(a + b × X387 – 2 × s)
= Exp(a + b × 563 – 2 × s)
= Exp(4.5214 + -0.0003 × 563 – 2 × 0.1098)
= Exp(4.1180)
= $61.43
November 30, 2023 calculations
Top border of price channel:
Exp(Y1,095)
= Exp(a + b × X1,095 + 2 × s)
= Exp(a + b × 1,588 + 2 × s)
= Exp(4.5214 + -0.0003 × 1,588 + 2 × 0.1098)
= Exp(4.2228)
= $68.22
Bottom border of price channel:
Exp(Y1,095)
= Exp(a + b × X1,095 – 2 × s)
= Exp(a + b × 1,588 – 2 × s)
= Exp(4.5214 + -0.0003 × 1,588 – 2 × 0.1098)
= Exp(3.7834)
= $43.97
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 11.23% per annum.
- EWBC price at the close of July 25, 2024 was $87.01 and was higher than the top border of the primary price channel by $23.89 (37.84%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 4, 2023
End date: July 25, 2024
a = 2.2583
b = 0.0012
s = 0.0776
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 53.56%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0776) – 1
= 36.37%
April 4, 2023 calculations
Top border of price channel:
Exp(Y929)
= Exp(a + b × X929 + 2 × s)
= Exp(a + b × 1,348 + 2 × s)
= Exp(2.2583 + 0.0012 × 1,348 + 2 × 0.0776)
= Exp(3.9975)
= $54.46
Bottom border of price channel:
Exp(Y929)
= Exp(a + b × X929 – 2 × s)
= Exp(a + b × 1,348 – 2 × s)
= Exp(2.2583 + 0.0012 × 1,348 – 2 × 0.0776)
= Exp(3.6873)
= $39.94
July 25, 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(2.2583 + 0.0012 × 1,826 + 2 × 0.0776)
= Exp(4.5592)
= $95.50
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.2583 + 0.0012 × 1,826 – 2 × 0.0776)
= Exp(4.2490)
= $70.03
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 53.56% per annum.
- EWBC price at the close of July 25, 2024 was inside the secondary price channel.