Stock Price Trends

Hudson Pacific Properties Inc (HPP)

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 19 million square feet, including development land.

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 52.00% per annum.
  • HPP price at the close of July 26, 2024 was $5.74 and was higher than the top border of the primary price channel by $1.51 (35.82%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 44.07% per annum.
  • HPP price at the close of July 26, 2024 was lower than the bottom border of the secondary price channel by $0.05 (0.84%). This indicates a possible reversal in the secondary trend direction.
  • 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 HPP 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: April 1, 2021
End date: November 28, 2023

a = 4.7155

b = -0.0020

s = 0.1971

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -52.00%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1971) – 1
= 119.96%

April 1, 2021 calculations

Top border of price channel:

Exp(Y423)
= Exp(a + b × X423 + 2 × s)
= Exp(a + b × 612 + 2 × s)
= Exp(4.7155 + -0.0020 × 612 + 2 × 0.1971)
= Exp(3.8788)
= $48.37

Bottom border of price channel:

Exp(Y423)
= Exp(a + b × X423 – 2 × s)
= Exp(a + b × 612 – 2 × s)
= Exp(4.7155 + -0.0020 × 612 – 2 × 0.1971)
= Exp(3.0905)
= $21.99

November 28, 2023 calculations

Top border of price channel:

Exp(Y1,092)
= Exp(a + b × X1,092 + 2 × s)
= Exp(a + b × 1,583 + 2 × s)
= Exp(4.7155 + -0.0020 × 1,583 + 2 × 0.1971)
= Exp(1.9260)
= $6.86

Bottom border of price channel:

Exp(Y1,092)
= Exp(a + b × X1,092 – 2 × s)
= Exp(a + b × 1,583 – 2 × s)
= Exp(4.7155 + -0.0020 × 1,583 – 2 × 0.1971)
= Exp(1.1377)
= $3.12

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 52.00% per annum.
  • HPP price at the close of July 26, 2024 was $5.74 and was higher than the top border of the primary price channel by $1.51 (35.82%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: March 14, 2023
End date: April 12, 2024

a = 0.2698

b = 0.0010

s = 0.1693

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.07%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1693) – 1
= 96.83%

March 14, 2023 calculations

Top border of price channel:

Exp(Y913)
= Exp(a + b × X913 + 2 × s)
= Exp(a + b × 1,324 + 2 × s)
= Exp(0.2698 + 0.0010 × 1,324 + 2 × 0.1693)
= Exp(1.9329)
= $6.91

Bottom border of price channel:

Exp(Y913)
= Exp(a + b × X913 – 2 × s)
= Exp(a + b × 1,324 – 2 × s)
= Exp(0.2698 + 0.0010 × 1,324 – 2 × 0.1693)
= Exp(1.2557)
= $3.51

April 12, 2024 calculations

Top border of price channel:

Exp(Y1,185)
= Exp(a + b × X1,185 + 2 × s)
= Exp(a + b × 1,719 + 2 × s)
= Exp(0.2698 + 0.0010 × 1,719 + 2 × 0.1693)
= Exp(2.3280)
= $10.26

Bottom border of price channel:

Exp(Y1,185)
= Exp(a + b × X1,185 – 2 × s)
= Exp(a + b × 1,719 – 2 × s)
= Exp(0.2698 + 0.0010 × 1,719 – 2 × 0.1693)
= Exp(1.6509)
= $5.21

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 44.07% per annum.
  • HPP price at the close of July 26, 2024 was lower than the bottom border of the secondary price channel by $0.05 (0.84%). This indicates a possible reversal in the secondary trend direction.