Stock Price Trends

Paramount Global Class B (PARA)

Paramount Global is a global media and entertainment company. The company is headquartered in New York, New York.

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 35.43% per annum.
  • PARA price at the close of May 10, 2024 was $13.05 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 113.01% per annum.
  • PARA price at the close of May 10, 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 PARA 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: March 25, 2021
End date: May 1, 2024

a = 4.5855

b = -0.0012

s = 0.1182

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -35.43%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1182) – 1
= 60.45%

March 25, 2021 calculations

Top border of price channel:

Exp(Y471)
= Exp(a + b × X471 + 2 × s)
= Exp(a + b × 682 + 2 × s)
= Exp(4.5855 + -0.0012 × 682 + 2 × 0.1182)
= Exp(4.0045)
= $54.85

Bottom border of price channel:

Exp(Y471)
= Exp(a + b × X471 – 2 × s)
= Exp(a + b × 682 – 2 × s)
= Exp(4.5855 + -0.0012 × 682 – 2 × 0.1182)
= Exp(3.5317)
= $34.18

May 1, 2024 calculations

Top border of price channel:

Exp(Y1,251)
= Exp(a + b × X1,251 + 2 × s)
= Exp(a + b × 1,815 + 2 × s)
= Exp(4.5855 + -0.0012 × 1,815 + 2 × 0.1182)
= Exp(2.6466)
= $14.11

Bottom border of price channel:

Exp(Y1,251)
= Exp(a + b × X1,251 – 2 × s)
= Exp(a + b × 1,815 – 2 × s)
= Exp(4.5855 + -0.0012 × 1,815 – 2 × 0.1182)
= Exp(2.1738)
= $8.79

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 35.43% per annum.
  • PARA price at the close of May 10, 2024 was $13.05 and was inside the primary price channel.

Secondary Trend

Start date: February 23, 2024
End date: May 10, 2024

a = -1.2468

b = 0.0021

s = 0.0575

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0021) – 1
= 113.01%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0575) – 1
= 25.85%

February 23, 2024 calculations

Top border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,747 + 2 × s)
= Exp(-1.2468 + 0.0021 × 1,747 + 2 × 0.0575)
= Exp(2.4873)
= $12.03

Bottom border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,747 – 2 × s)
= Exp(-1.2468 + 0.0021 × 1,747 – 2 × 0.0575)
= Exp(2.2574)
= $9.56

May 10, 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(-1.2468 + 0.0021 × 1,824 + 2 × 0.0575)
= Exp(2.6469)
= $14.11

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-1.2468 + 0.0021 × 1,824 – 2 × 0.0575)
= Exp(2.4169)
= $11.21

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 113.01% per annum.
  • PARA price at the close of May 10, 2024 was inside the secondary price channel.