PPG Industries Inc (PPG)
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.
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 10.37% per annum.
- PPG price at the close of May 9, 2024 was $134.35 and was higher than the top border of the primary price channel by $5.98 (4.66%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 10.27% per annum.
- PPG price at the close of May 9, 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 PPG 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: November 9, 2020
End date: March 31, 2023
a = 5.2015
b = -0.0003
s = 0.1005
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.37%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1005) – 1
= 49.46%
November 9, 2020 calculations
Top border of price channel:
Exp(Y379)
= Exp(a + b × X379 + 2 × s)
= Exp(a + b × 549 + 2 × s)
= Exp(5.2015 + -0.0003 × 549 + 2 × 0.1005)
= Exp(5.2378)
= $188.25
Bottom border of price channel:
Exp(Y379)
= Exp(a + b × X379 – 2 × s)
= Exp(a + b × 549 – 2 × s)
= Exp(5.2015 + -0.0003 × 549 – 2 × 0.1005)
= Exp(4.8360)
= $125.96
March 31, 2023 calculations
Top border of price channel:
Exp(Y980)
= Exp(a + b × X980 + 2 × s)
= Exp(a + b × 1,421 + 2 × s)
= Exp(5.2015 + -0.0003 × 1,421 + 2 × 0.1005)
= Exp(4.9764)
= $144.95
Bottom border of price channel:
Exp(Y980)
= Exp(a + b × X980 – 2 × s)
= Exp(a + b × 1,421 – 2 × s)
= Exp(5.2015 + -0.0003 × 1,421 – 2 × 0.1005)
= Exp(4.5745)
= $96.98
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.37% per annum.
- PPG price at the close of May 9, 2024 was $134.35 and was higher than the top border of the primary price channel by $5.98 (4.66%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 1, 2022
End date: April 18, 2024
a = 4.4775
b = 0.0003
s = 0.0578
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 10.27%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0578) – 1
= 26.02%
March 1, 2022 calculations
Top border of price channel:
Exp(Y707)
= Exp(a + b × X707 + 2 × s)
= Exp(a + b × 1,026 + 2 × s)
= Exp(4.4775 + 0.0003 × 1,026 + 2 × 0.0578)
= Exp(4.8679)
= $130.04
Bottom border of price channel:
Exp(Y707)
= Exp(a + b × X707 – 2 × s)
= Exp(a + b × 1,026 – 2 × s)
= Exp(4.4775 + 0.0003 × 1,026 – 2 × 0.0578)
= Exp(4.6366)
= $103.20
April 18, 2024 calculations
Top border of price channel:
Exp(Y1,243)
= Exp(a + b × X1,243 + 2 × s)
= Exp(a + b × 1,805 + 2 × s)
= Exp(4.4775 + 0.0003 × 1,805 + 2 × 0.0578)
= Exp(5.0765)
= $160.21
Bottom border of price channel:
Exp(Y1,243)
= Exp(a + b × X1,243 – 2 × s)
= Exp(a + b × 1,805 – 2 × s)
= Exp(4.4775 + 0.0003 × 1,805 – 2 × 0.0578)
= Exp(4.8453)
= $127.14
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 10.27% per annum.
- PPG price at the close of May 9, 2024 was inside the secondary price channel.