Stock Price Trends

Virtus Investment Partners Inc (VRTS)

Virtus Investment Partners, Inc. is a publicly owned investment manager. The company is headquartered in Hartford, Connecticut.

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 12.40% per annum.
  • VRTS price at the close of July 25, 2024 was $245.79 and was higher than the top border of the primary price channel by $33.16 (15.59%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 16.94% per annum.
  • VRTS 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 VRTS 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: December 30, 2020
End date: December 12, 2023

a = 5.7258

b = -0.0004

s = 0.1480

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -12.40%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1480) – 1
= 80.76%

December 30, 2020 calculations

Top border of price channel:

Exp(Y361)
= Exp(a + b × X361 + 2 × s)
= Exp(a + b × 523 + 2 × s)
= Exp(5.7258 + -0.0004 × 523 + 2 × 0.1480)
= Exp(5.8321)
= $341.08

Bottom border of price channel:

Exp(Y361)
= Exp(a + b × X361 – 2 × s)
= Exp(a + b × 523 – 2 × s)
= Exp(5.7258 + -0.0004 × 523 – 2 × 0.1480)
= Exp(5.2401)
= $188.69

December 12, 2023 calculations

Top border of price channel:

Exp(Y1,103)
= Exp(a + b × X1,103 + 2 × s)
= Exp(a + b × 1,600 + 2 × s)
= Exp(5.7258 + -0.0004 × 1,600 + 2 × 0.1480)
= Exp(5.4415)
= $230.79

Bottom border of price channel:

Exp(Y1,103)
= Exp(a + b × X1,103 – 2 × s)
= Exp(a + b × 1,600 – 2 × s)
= Exp(5.7258 + -0.0004 × 1,600 – 2 × 0.1480)
= Exp(4.8495)
= $127.68

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 12.40% per annum.
  • VRTS price at the close of July 25, 2024 was $245.79 and was higher than the top border of the primary price channel by $33.16 (15.59%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 22, 2022
End date: July 25, 2024

a = 4.6636

b = 0.0004

s = 0.0829

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.94%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0829) – 1
= 39.32%

April 22, 2022 calculations

Top border of price channel:

Exp(Y691)
= Exp(a + b × X691 + 2 × s)
= Exp(a + b × 1,001 + 2 × s)
= Exp(4.6636 + 0.0004 × 1,001 + 2 × 0.0829)
= Exp(5.2587)
= $192.22

Bottom border of price channel:

Exp(Y691)
= Exp(a + b × X691 – 2 × s)
= Exp(a + b × 1,001 – 2 × s)
= Exp(4.6636 + 0.0004 × 1,001 – 2 × 0.0829)
= Exp(4.9271)
= $137.97

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(4.6636 + 0.0004 × 1,826 + 2 × 0.0829)
= Exp(5.6124)
= $273.80

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.6636 + 0.0004 × 1,826 – 2 × 0.0829)
= Exp(5.2808)
= $196.53

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 16.94% per annum.
  • VRTS price at the close of July 25, 2024 was inside the secondary price channel.