Stock Price Trends

Capri Holdings Ltd (CPRI)

Capri Holdings Limited designs, markets, distributes and retails branded men's and women's clothing, footwear and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa and Asia. The company is headquartered in London, the United Kingdom.

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 11.27% per annum.
  • CPRI price at the close of September 6, 2024 was $34.77 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 43.13% per annum.
  • CPRI price at the close of September 6, 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 CPRI 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: March 8, 2021
End date: September 6, 2024

a = 4.2575

b = -0.0003

s = 0.1446

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1446) – 1
= 78.34%

March 8, 2021 calculations

Top border of price channel:

Exp(Y376)
= Exp(a + b × X376 + 2 × s)
= Exp(a + b × 546 + 2 × s)
= Exp(4.2575 + -0.0003 × 546 + 2 × 0.1446)
= Exp(4.3678)
= $78.87

Bottom border of price channel:

Exp(Y376)
= Exp(a + b × X376 – 2 × s)
= Exp(a + b × 546 – 2 × s)
= Exp(4.2575 + -0.0003 × 546 – 2 × 0.1446)
= Exp(3.7893)
= $44.23

September 6, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.2575 + -0.0003 × 1,824 + 2 × 0.1446)
= Exp(3.9490)
= $51.89

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.2575 + -0.0003 × 1,824 – 2 × 0.1446)
= Exp(3.3705)
= $29.09

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 11.27% per annum.
  • CPRI price at the close of September 6, 2024 was $34.77 and was inside the primary price channel.

Secondary Trend

Start date: August 28, 2023
End date: September 6, 2024

a = 6.2814

b = -0.0015

s = 0.0698

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0015) – 1
= -43.13%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0698) – 1
= 32.21%

August 28, 2023 calculations

Top border of price channel:

Exp(Y999)
= Exp(a + b × X999 + 2 × s)
= Exp(a + b × 1,449 + 2 × s)
= Exp(6.2814 + -0.0015 × 1,449 + 2 × 0.0698)
= Exp(4.1807)
= $65.41

Bottom border of price channel:

Exp(Y999)
= Exp(a + b × X999 – 2 × s)
= Exp(a + b × 1,449 – 2 × s)
= Exp(6.2814 + -0.0015 × 1,449 – 2 × 0.0698)
= Exp(3.9015)
= $49.48

September 6, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(6.2814 + -0.0015 × 1,824 + 2 × 0.0698)
= Exp(3.6009)
= $36.63

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(6.2814 + -0.0015 × 1,824 – 2 × 0.0698)
= Exp(3.3217)
= $27.71

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 43.13% per annum.
  • CPRI price at the close of September 6, 2024 was inside the secondary price channel.