The Coca-Cola Company (KO)
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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 0.29% per annum.
- KO price at the close of April 30, 2024 was $61.77 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 22.88% per annum.
- KO price at the close of April 30, 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 KO 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 4, 2022
End date: April 23, 2024
a = 4.0578
b = 0.0000
s = 0.0380
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 0.29%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0380) – 1
= 16.40%
January 4, 2022 calculations
Top border of price channel:
Exp(Y676)
= Exp(a + b × X676 + 2 × s)
= Exp(a + b × 979 + 2 × s)
= Exp(4.0578 + 0.0000 × 979 + 2 × 0.0380)
= Exp(4.1416)
= $62.90
Bottom border of price channel:
Exp(Y676)
= Exp(a + b × X676 – 2 × s)
= Exp(a + b × 979 – 2 × s)
= Exp(4.0578 + 0.0000 × 979 – 2 × 0.0380)
= Exp(3.9897)
= $54.04
April 23, 2024 calculations
Top border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 + 2 × s)
= Exp(a + b × 1,819 + 2 × s)
= Exp(4.0578 + 0.0000 × 1,819 + 2 × 0.0380)
= Exp(4.1483)
= $63.33
Bottom border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 – 2 × s)
= Exp(a + b × 1,819 – 2 × s)
= Exp(4.0578 + 0.0000 × 1,819 – 2 × 0.0380)
= Exp(3.9964)
= $54.40
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 0.29% per annum.
- KO price at the close of April 30, 2024 was $61.77 and was inside the primary price channel.
Secondary Trend
Start date: September 26, 2023
End date: April 30, 2024
a = 3.0918
b = 0.0006
s = 0.0223
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 22.88%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0223) – 1
= 9.33%
September 26, 2023 calculations
Top border of price channel:
Exp(Y1,109)
= Exp(a + b × X1,109 + 2 × s)
= Exp(a + b × 1,609 + 2 × s)
= Exp(3.0918 + 0.0006 × 1,609 + 2 × 0.0223)
= Exp(4.0446)
= $57.09
Bottom border of price channel:
Exp(Y1,109)
= Exp(a + b × X1,109 – 2 × s)
= Exp(a + b × 1,609 – 2 × s)
= Exp(3.0918 + 0.0006 × 1,609 – 2 × 0.0223)
= Exp(3.9554)
= $52.22
April 30, 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(3.0918 + 0.0006 × 1,826 + 2 × 0.0223)
= Exp(4.1671)
= $64.53
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.0918 + 0.0006 × 1,826 – 2 × 0.0223)
= Exp(4.0779)
= $59.02
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 22.88% per annum.
- KO price at the close of April 30, 2024 was inside the secondary price channel.