Westlake Chemical Corporation (WLK)
None
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 14.94% per annum.
- WLK price at the close of May 8, 2024 was $154.94 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 30.36% per annum.
- WLK price at the close of May 8, 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 WLK 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 4, 2020
End date: December 13, 2023
a = 4.1943
b = 0.0004
s = 0.0971
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.94%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0971) – 1
= 47.48%
December 4, 2020 calculations
Top border of price channel:
Exp(Y398)
= Exp(a + b × X398 + 2 × s)
= Exp(a + b × 575 + 2 × s)
= Exp(4.1943 + 0.0004 × 575 + 2 × 0.0971)
= Exp(4.6080)
= $100.28
Bottom border of price channel:
Exp(Y398)
= Exp(a + b × X398 – 2 × s)
= Exp(a + b × 575 – 2 × s)
= Exp(4.1943 + 0.0004 × 575 – 2 × 0.0971)
= Exp(4.2195)
= $68.00
December 13, 2023 calculations
Top border of price channel:
Exp(Y1,158)
= Exp(a + b × X1,158 + 2 × s)
= Exp(a + b × 1,679 + 2 × s)
= Exp(4.1943 + 0.0004 × 1,679 + 2 × 0.0971)
= Exp(5.0292)
= $152.81
Bottom border of price channel:
Exp(Y1,158)
= Exp(a + b × X1,158 – 2 × s)
= Exp(a + b × 1,679 – 2 × s)
= Exp(4.1943 + 0.0004 × 1,679 – 2 × 0.0971)
= Exp(4.6407)
= $103.61
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 14.94% per annum.
- WLK price at the close of May 8, 2024 was $154.94 and was inside the primary price channel.
Secondary Trend
Start date: June 22, 2022
End date: May 8, 2024
a = 3.6810
b = 0.0007
s = 0.0593
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 30.36%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0593) – 1
= 26.77%
June 22, 2022 calculations
Top border of price channel:
Exp(Y786)
= Exp(a + b × X786 + 2 × s)
= Exp(a + b × 1,140 + 2 × s)
= Exp(3.6810 + 0.0007 × 1,140 + 2 × 0.0593)
= Exp(4.6277)
= $102.28
Bottom border of price channel:
Exp(Y786)
= Exp(a + b × X786 – 2 × s)
= Exp(a + b × 1,140 – 2 × s)
= Exp(3.6810 + 0.0007 × 1,140 – 2 × 0.0593)
= Exp(4.3905)
= $80.68
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.6810 + 0.0007 × 1,826 + 2 × 0.0593)
= Exp(5.1260)
= $168.34
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.6810 + 0.0007 × 1,826 – 2 × 0.0593)
= Exp(4.8888)
= $132.79
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 30.36% per annum.
- WLK price at the close of May 8, 2024 was inside the secondary price channel.