WestRock Co (WRK)
WestRock is an American corrugated packaging company headquartered in Sandy Springs, Georgia.
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 89.99% per annum.
- WRK price at the close of July 5, 2024 was $51.51 and was lower than the bottom border of the primary price channel by $0.46 (0.89%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 47.32% per annum.
- WRK price at the close of July 5, 2024 was higher than the top border of the secondary price channel by $0.04 (0.08%). This indicates a possible reversal in the secondary trend direction.
- 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 WRK 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 2, 2023
End date: June 10, 2024
a = 0.8522
b = 0.0018
s = 0.0385
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 89.99%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0385) – 1
= 16.66%
May 2, 2023 calculations
Top border of price channel:
Exp(Y948)
= Exp(a + b × X948 + 2 × s)
= Exp(a + b × 1,376 + 2 × s)
= Exp(0.8522 + 0.0018 × 1,376 + 2 × 0.0385)
= Exp(3.3488)
= $28.47
Bottom border of price channel:
Exp(Y948)
= Exp(a + b × X948 – 2 × s)
= Exp(a + b × 1,376 – 2 × s)
= Exp(0.8522 + 0.0018 × 1,376 – 2 × 0.0385)
= Exp(3.1947)
= $24.40
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(0.8522 + 0.0018 × 1,781 + 2 × 0.0385)
= Exp(4.0609)
= $58.03
Bottom border of price channel:
Exp(Y1,226)
= Exp(a + b × X1,226 – 2 × s)
= Exp(a + b × 1,781 – 2 × s)
= Exp(0.8522 + 0.0018 × 1,781 – 2 × 0.0385)
= Exp(3.9068)
= $49.74
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 89.99% per annum.
- WRK price at the close of July 5, 2024 was $51.51 and was lower than the bottom border of the primary price channel by $0.46 (0.89%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: May 15, 2024
End date: July 3, 2024
a = 7.0694
b = -0.0018
s = 0.0217
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0018) – 1
= -47.32%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0217) – 1
= 9.05%
May 15, 2024 calculations
Top border of price channel:
Exp(Y1,209)
= Exp(a + b × X1,209 + 2 × s)
= Exp(a + b × 1,755 + 2 × s)
= Exp(7.0694 + -0.0018 × 1,755 + 2 × 0.0217)
= Exp(4.0305)
= $56.29
Bottom border of price channel:
Exp(Y1,209)
= Exp(a + b × X1,209 – 2 × s)
= Exp(a + b × 1,755 – 2 × s)
= Exp(7.0694 + -0.0018 × 1,755 – 2 × 0.0217)
= Exp(3.9439)
= $51.62
July 3, 2024 calculations
Top border of price channel:
Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,804 + 2 × s)
= Exp(7.0694 + -0.0018 × 1,804 + 2 × 0.0217)
= Exp(3.9445)
= $51.65
Bottom border of price channel:
Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,804 – 2 × s)
= Exp(7.0694 + -0.0018 × 1,804 – 2 × 0.0217)
= Exp(3.8578)
= $47.36
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 47.32% per annum.
- WRK price at the close of July 5, 2024 was higher than the top border of the secondary price channel by $0.04 (0.08%). This indicates a possible reversal in the secondary trend direction.