LyondellBasell Industries NV (LYB)
LyondellBasell Industries N.V. (NYSE: LYB) is a Dutch-domiciled multinational chemical company with American and British roots, incorporated in the Netherlands, with U.S. operations headquarters in Houston, Texas, and offices in London, UK. The company is the largest licensor of polyethylene and polypropylene technologies. It also produces ethylene, propylene, polyolefins, and oxyfuels.
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 5.33% per annum.
- LYB price at the close of May 7, 2024 was $101.45 and was higher than the top border of the primary price channel by $17.19 (20.40%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 16.78% per annum.
- LYB price at the close of May 7, 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 LYB 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 5, 2021
End date: January 6, 2023
a = 4.5625
b = -0.0001
s = 0.0726
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -5.33%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0726) – 1
= 33.69%
February 5, 2021 calculations
Top border of price channel:
Exp(Y441)
= Exp(a + b × X441 + 2 × s)
= Exp(a + b × 639 + 2 × s)
= Exp(4.5625 + -0.0001 × 639 + 2 × 0.0726)
= Exp(4.6119)
= $100.68
Bottom border of price channel:
Exp(Y441)
= Exp(a + b × X441 – 2 × s)
= Exp(a + b × 639 – 2 × s)
= Exp(4.5625 + -0.0001 × 639 – 2 × 0.0726)
= Exp(4.3216)
= $75.31
January 6, 2023 calculations
Top border of price channel:
Exp(Y924)
= Exp(a + b × X924 + 2 × s)
= Exp(a + b × 1,339 + 2 × s)
= Exp(4.5625 + -0.0001 × 1,339 + 2 × 0.0726)
= Exp(4.5070)
= $90.65
Bottom border of price channel:
Exp(Y924)
= Exp(a + b × X924 – 2 × s)
= Exp(a + b × 1,339 – 2 × s)
= Exp(4.5625 + -0.0001 × 1,339 – 2 × 0.0726)
= Exp(4.2166)
= $67.80
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 5.33% per annum.
- LYB price at the close of May 7, 2024 was $101.45 and was higher than the top border of the primary price channel by $17.19 (20.40%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: June 22, 2022
End date: May 7, 2024
a = 3.8390
b = 0.0004
s = 0.0493
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.78%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0493) – 1
= 21.81%
June 22, 2022 calculations
Top border of price channel:
Exp(Y787)
= Exp(a + b × X787 + 2 × s)
= Exp(a + b × 1,141 + 2 × s)
= Exp(3.8390 + 0.0004 × 1,141 + 2 × 0.0493)
= Exp(4.4227)
= $83.32
Bottom border of price channel:
Exp(Y787)
= Exp(a + b × X787 – 2 × s)
= Exp(a + b × 1,141 – 2 × s)
= Exp(3.8390 + 0.0004 × 1,141 – 2 × 0.0493)
= Exp(4.2254)
= $68.40
May 7, 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(3.8390 + 0.0004 × 1,826 + 2 × 0.0493)
= Exp(4.7138)
= $111.48
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.8390 + 0.0004 × 1,826 – 2 × 0.0493)
= Exp(4.5166)
= $91.52
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 16.78% per annum.
- LYB price at the close of May 7, 2024 was inside the secondary price channel.