Stock Price Trends

Westinghouse Air Brake Technologies Corporation (WAB)

wabtec corporation is a transportation/trucking/railroad company headquarters at 1001 airbrake ave, wilmerding, pa 15148

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 127.33% per annum.
  • WAB price at the close of February 16, 2024 was $134.28 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 95.37% per annum.
  • WAB price at the close of February 16, 2024 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 WAB 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: October 3, 2023
End date: February 16, 2024

a = 0.8277

b = 0.0022

s = 0.0225

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0022) – 1
= 127.33%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0225) – 1
= 9.41%

October 3, 2023 calculations

Top border of price channel:

Exp(Y1,164)
= Exp(a + b × X1,164 + 2 × s)
= Exp(a + b × 1,687 + 2 × s)
= Exp(0.8277 + 0.0022 × 1,687 + 2 × 0.0225)
= Exp(4.6684)
= $106.52

Bottom border of price channel:

Exp(Y1,164)
= Exp(a + b × X1,164 – 2 × s)
= Exp(a + b × 1,687 – 2 × s)
= Exp(0.8277 + 0.0022 × 1,687 – 2 × 0.0225)
= Exp(4.5784)
= $97.36

February 16, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(0.8277 + 0.0022 × 1,823 + 2 × 0.0225)
= Exp(4.9744)
= $144.66

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(0.8277 + 0.0022 × 1,823 – 2 × 0.0225)
= Exp(4.8844)
= $132.22

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 127.33% per annum.
  • WAB price at the close of February 16, 2024 was $134.28 and was inside the primary price channel.

Secondary Trend

Start date: November 14, 2023
End date: February 16, 2024

a = 1.5701

b = 0.0018

s = 0.0133

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 95.37%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0133) – 1
= 5.44%

November 14, 2023 calculations

Top border of price channel:

Exp(Y1,194)
= Exp(a + b × X1,194 + 2 × s)
= Exp(a + b × 1,729 + 2 × s)
= Exp(1.5701 + 0.0018 × 1,729 + 2 × 0.0133)
= Exp(4.7692)
= $117.82

Bottom border of price channel:

Exp(Y1,194)
= Exp(a + b × X1,194 – 2 × s)
= Exp(a + b × 1,729 – 2 × s)
= Exp(1.5701 + 0.0018 × 1,729 – 2 × 0.0133)
= Exp(4.7162)
= $111.74

February 16, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(1.5701 + 0.0018 × 1,823 + 2 × 0.0133)
= Exp(4.9416)
= $140.00

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(1.5701 + 0.0018 × 1,823 – 2 × 0.0133)
= Exp(4.8886)
= $132.77

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 95.37% per annum.
  • WAB price at the close of February 16, 2024 was inside the secondary price channel.