Stock Price Trends

Humana Inc (HUM)

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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 66.31% per annum.
  • HUM price at the close of April 26, 2024 was $305.90 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 51.19% per annum.
  • HUM price at the close of April 26, 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 HUM 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 16, 2023
End date: April 26, 2024

a = 11.1591

b = -0.0030

s = 0.0446

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0030) – 1
= -66.31%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0446) – 1
= 19.53%

October 16, 2023 calculations

Top border of price channel:

Exp(Y1,125)
= Exp(a + b × X1,125 + 2 × s)
= Exp(a + b × 1,631 + 2 × s)
= Exp(11.1591 + -0.0030 × 1,631 + 2 × 0.0446)
= Exp(6.3864)
= $593.74

Bottom border of price channel:

Exp(Y1,125)
= Exp(a + b × X1,125 – 2 × s)
= Exp(a + b × 1,631 – 2 × s)
= Exp(11.1591 + -0.0030 × 1,631 – 2 × 0.0446)
= Exp(6.2081)
= $496.75

April 26, 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(11.1591 + -0.0030 × 1,824 + 2 × 0.0446)
= Exp(5.8111)
= $334.00

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(11.1591 + -0.0030 × 1,824 – 2 × 0.0446)
= Exp(5.6328)
= $279.44

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 66.31% per annum.
  • HUM price at the close of April 26, 2024 was $305.90 and was inside the primary price channel.

Secondary Trend

Start date: January 25, 2024
End date: April 26, 2024

a = 9.3357

b = -0.0020

s = 0.0289

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -51.19%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0289) – 1
= 12.25%

January 25, 2024 calculations

Top border of price channel:

Exp(Y1,194)
= Exp(a + b × X1,194 + 2 × s)
= Exp(a + b × 1,732 + 2 × s)
= Exp(9.3357 + -0.0020 × 1,732 + 2 × 0.0289)
= Exp(5.9898)
= $399.35

Bottom border of price channel:

Exp(Y1,194)
= Exp(a + b × X1,194 – 2 × s)
= Exp(a + b × 1,732 – 2 × s)
= Exp(9.3357 + -0.0020 × 1,732 – 2 × 0.0289)
= Exp(5.8743)
= $355.79

April 26, 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(9.3357 + -0.0020 × 1,824 + 2 × 0.0289)
= Exp(5.8091)
= $333.30

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(9.3357 + -0.0020 × 1,824 – 2 × 0.0289)
= Exp(5.6935)
= $296.94

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 51.19% per annum.
  • HUM price at the close of April 26, 2024 was inside the secondary price channel.