Stock Price Trends

Nike Inc (NKE)

Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment.

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 21.99% per annum.
  • NKE price at the close of January 17, 2025 was $70.84 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 66.62% per annum.
  • NKE price at the close of January 17, 2025 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 NKE 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 3, 2023
End date: January 17, 2025

a = 5.5554

b = -0.0007

s = 0.0697

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -21.99%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0697) – 1
= 32.17%

January 3, 2023 calculations

Top border of price channel:

Exp(Y744)
= Exp(a + b × X744 + 2 × s)
= Exp(a + b × 1,078 + 2 × s)
= Exp(5.5554 + -0.0007 × 1,078 + 2 × 0.0697)
= Exp(4.9614)
= $142.79

Bottom border of price channel:

Exp(Y744)
= Exp(a + b × X744 – 2 × s)
= Exp(a + b × 1,078 – 2 × s)
= Exp(5.5554 + -0.0007 × 1,078 – 2 × 0.0697)
= Exp(4.6824)
= $108.03

January 17, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(5.5554 + -0.0007 × 1,823 + 2 × 0.0697)
= Exp(4.4544)
= $86.01

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(5.5554 + -0.0007 × 1,823 – 2 × 0.0697)
= Exp(4.1755)
= $65.07

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 21.99% per annum.
  • NKE price at the close of January 17, 2025 was $70.84 and was inside the primary price channel.

Secondary Trend

Start date: December 11, 2024
End date: January 17, 2025

a = 9.7378

b = -0.0030

s = 0.0104

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0030) – 1
= -66.62%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0104) – 1
= 4.25%

December 11, 2024 calculations

Top border of price channel:

Exp(Y1,232)
= Exp(a + b × X1,232 + 2 × s)
= Exp(a + b × 1,786 + 2 × s)
= Exp(9.7378 + -0.0030 × 1,786 + 2 × 0.0104)
= Exp(4.3893)
= $80.58

Bottom border of price channel:

Exp(Y1,232)
= Exp(a + b × X1,232 – 2 × s)
= Exp(a + b × 1,786 – 2 × s)
= Exp(9.7378 + -0.0030 × 1,786 – 2 × 0.0104)
= Exp(4.3477)
= $77.30

January 17, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(9.7378 + -0.0030 × 1,823 + 2 × 0.0104)
= Exp(4.2780)
= $72.10

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(9.7378 + -0.0030 × 1,823 – 2 × 0.0104)
= Exp(4.2365)
= $69.16

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 66.62% per annum.
  • NKE price at the close of January 17, 2025 was inside the secondary price channel.