Stock Price Trends

AAR Corp (AIR)

AAR Corp. The company is headquartered in Wood Dale, Illinois.

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 24.85% per annum.
  • AIR price at the close of November 19, 2024 was $67.35 and was higher than the top border of the primary price channel by $0.40 (0.60%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,142.32% per annum.
  • AIR price at the close of November 19, 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 AIR 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: April 23, 2024
End date: November 7, 2024

a = 5.5397

b = -0.0008

s = 0.0467

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -24.85%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0467) – 1
= 20.54%

April 23, 2024 calculations

Top border of price channel:

Exp(Y1,111)
= Exp(a + b × X1,111 + 2 × s)
= Exp(a + b × 1,616 + 2 × s)
= Exp(5.5397 + -0.0008 × 1,616 + 2 × 0.0467)
= Exp(4.3682)
= $78.90

Bottom border of price channel:

Exp(Y1,111)
= Exp(a + b × X1,111 – 2 × s)
= Exp(a + b × 1,616 – 2 × s)
= Exp(5.5397 + -0.0008 × 1,616 – 2 × 0.0467)
= Exp(4.1814)
= $65.46

November 7, 2024 calculations

Top border of price channel:

Exp(Y1,249)
= Exp(a + b × X1,249 + 2 × s)
= Exp(a + b × 1,814 + 2 × s)
= Exp(5.5397 + -0.0008 × 1,814 + 2 × 0.0467)
= Exp(4.2133)
= $67.58

Bottom border of price channel:

Exp(Y1,249)
= Exp(a + b × X1,249 – 2 × s)
= Exp(a + b × 1,814 – 2 × s)
= Exp(5.5397 + -0.0008 × 1,814 – 2 × 0.0467)
= Exp(4.0264)
= $56.06

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 24.85% per annum.
  • AIR price at the close of November 19, 2024 was $67.35 and was higher than the top border of the primary price channel by $0.40 (0.60%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 28, 2024
End date: November 19, 2024

a = -8.3725

b = 0.0069

s = 0.0325

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0069) – 1
= 1,142.32%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0325) – 1
= 13.90%

October 28, 2024 calculations

Top border of price channel:

Exp(Y1,241)
= Exp(a + b × X1,241 + 2 × s)
= Exp(a + b × 1,804 + 2 × s)
= Exp(-8.3725 + 0.0069 × 1,804 + 2 × 0.0325)
= Exp(4.1455)
= $63.15

Bottom border of price channel:

Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,804 – 2 × s)
= Exp(-8.3725 + 0.0069 × 1,804 – 2 × 0.0325)
= Exp(4.0153)
= $55.44

November 19, 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(-8.3725 + 0.0069 × 1,826 + 2 × 0.0325)
= Exp(4.2974)
= $73.51

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-8.3725 + 0.0069 × 1,826 – 2 × 0.0325)
= Exp(4.1672)
= $64.53

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,142.32% per annum.
  • AIR price at the close of November 19, 2024 was inside the secondary price channel.