Ready Capital Corp (RC)
Ready Capital Corporation, is a real estate finance company in the United States. 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 7.26% per annum.
- RC price at the close of July 25, 2024 was $9.13 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 307.94% per annum.
- RC price at the close of July 25, 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 RC 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: May 28, 2021
End date: July 25, 2024
a = 2.5153
b = -0.0002
s = 0.0685
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -7.26%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0685) – 1
= 31.52%
May 28, 2021 calculations
Top border of price channel:
Exp(Y464)
= Exp(a + b × X464 + 2 × s)
= Exp(a + b × 672 + 2 × s)
= Exp(2.5153 + -0.0002 × 672 + 2 × 0.0685)
= Exp(2.5135)
= $12.35
Bottom border of price channel:
Exp(Y464)
= Exp(a + b × X464 – 2 × s)
= Exp(a + b × 672 – 2 × s)
= Exp(2.5153 + -0.0002 × 672 – 2 × 0.0685)
= Exp(2.2395)
= $9.39
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.5153 + -0.0002 × 1,826 + 2 × 0.0685)
= Exp(2.2751)
= $9.73
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.5153 + -0.0002 × 1,826 – 2 × 0.0685)
= Exp(2.0011)
= $7.40
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 7.26% per annum.
- RC price at the close of July 25, 2024 was $9.13 and was inside the primary price channel.
Secondary Trend
Start date: June 10, 2024
End date: July 25, 2024
a = -4.8056
b = 0.0039
s = 0.0239
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0039) – 1
= 307.94%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0239) – 1
= 10.04%
June 10, 2024 calculations
Top border of price channel:
Exp(Y1,226)
= Exp(a + b × X1,226 + 2 × s)
= Exp(a + b × 1,781 + 2 × s)
= Exp(-4.8056 + 0.0039 × 1,781 + 2 × 0.0239)
= Exp(2.1025)
= $8.19
Bottom border of price channel:
Exp(Y1,226)
= Exp(a + b × X1,226 – 2 × s)
= Exp(a + b × 1,781 – 2 × s)
= Exp(-4.8056 + 0.0039 × 1,781 – 2 × 0.0239)
= Exp(2.0068)
= $7.44
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-4.8056 + 0.0039 × 1,826 + 2 × 0.0239)
= Exp(2.2758)
= $9.74
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-4.8056 + 0.0039 × 1,826 – 2 × 0.0239)
= Exp(2.1802)
= $8.85
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 307.94% per annum.
- RC price at the close of July 25, 2024 was inside the secondary price channel.