Stock Price Trends

Camden Property Trust (CPT)

Camden Property Trust, an S&P 400 company, is a real estate company primarily engaged in the ownership, management, development, remodeling, acquisition, and construction of multi-family apartment communities.

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 44.73% per annum.
  • CPT price at the close of November 19, 2024 was $121.29 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 17.69% per annum.
  • CPT 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 CPT 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 25, 2023
End date: November 19, 2024

a = 2.9820

b = 0.0010

s = 0.0376

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.73%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0376) – 1
= 16.24%

October 25, 2023 calculations

Top border of price channel:

Exp(Y988)
= Exp(a + b × X988 + 2 × s)
= Exp(a + b × 1,435 + 2 × s)
= Exp(2.9820 + 0.0010 × 1,435 + 2 × 0.0376)
= Exp(4.5107)
= $90.98

Bottom border of price channel:

Exp(Y988)
= Exp(a + b × X988 – 2 × s)
= Exp(a + b × 1,435 – 2 × s)
= Exp(2.9820 + 0.0010 × 1,435 – 2 × 0.0376)
= Exp(4.3602)
= $78.27

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(2.9820 + 0.0010 × 1,826 + 2 × 0.0376)
= Exp(4.9067)
= $135.19

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.9820 + 0.0010 × 1,826 – 2 × 0.0376)
= Exp(4.7562)
= $116.31

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 44.73% per annum.
  • CPT price at the close of November 19, 2024 was $121.29 and was inside the primary price channel.

Secondary Trend

Start date: August 23, 2024
End date: November 19, 2024

a = 5.7478

b = -0.0005

s = 0.0172

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0005) – 1
= -17.69%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0172) – 1
= 7.11%

August 23, 2024 calculations

Top border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 + 2 × s)
= Exp(a + b × 1,738 + 2 × s)
= Exp(5.7478 + -0.0005 × 1,738 + 2 × 0.0172)
= Exp(4.8551)
= $128.39

Bottom border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 – 2 × s)
= Exp(a + b × 1,738 – 2 × s)
= Exp(5.7478 + -0.0005 × 1,738 – 2 × 0.0172)
= Exp(4.7865)
= $119.88

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(5.7478 + -0.0005 × 1,826 + 2 × 0.0172)
= Exp(4.8082)
= $122.51

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.7478 + -0.0005 × 1,826 – 2 × 0.0172)
= Exp(4.7395)
= $114.38

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 17.69% per annum.
  • CPT price at the close of November 19, 2024 was inside the secondary price channel.