Stock Price Trends

Eversource Energy (ES)

Eversource Energy is a publicly traded, Fortune 500 energy company headquartered in Hartford, Connecticut, and Boston, Massachusetts.

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 22.74% per annum.
  • ES price at the close of November 20, 2024 was $61.61 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 35.35% per annum.
  • ES price at the close of November 20, 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 ES 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: September 28, 2023
End date: November 4, 2024

a = 3.1704

b = 0.0006

s = 0.0449

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 22.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0449) – 1
= 19.66%

September 28, 2023 calculations

Top border of price channel:

Exp(Y968)
= Exp(a + b × X968 + 2 × s)
= Exp(a + b × 1,407 + 2 × s)
= Exp(3.1704 + 0.0006 × 1,407 + 2 × 0.0449)
= Exp(4.0500)
= $57.40

Bottom border of price channel:

Exp(Y968)
= Exp(a + b × X968 – 2 × s)
= Exp(a + b × 1,407 – 2 × s)
= Exp(3.1704 + 0.0006 × 1,407 – 2 × 0.0449)
= Exp(3.8705)
= $47.97

November 4, 2024 calculations

Top border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 + 2 × s)
= Exp(a + b × 1,810 + 2 × s)
= Exp(3.1704 + 0.0006 × 1,810 + 2 × 0.0449)
= Exp(4.2762)
= $71.97

Bottom border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 – 2 × s)
= Exp(a + b × 1,810 – 2 × s)
= Exp(3.1704 + 0.0006 × 1,810 – 2 × 0.0449)
= Exp(4.0967)
= $60.14

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 22.74% per annum.
  • ES price at the close of November 20, 2024 was $61.61 and was inside the primary price channel.

Secondary Trend

Start date: August 30, 2024
End date: November 20, 2024

a = 6.3095

b = -0.0012

s = 0.0211

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -35.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0211) – 1
= 8.79%

August 30, 2024 calculations

Top border of price channel:

Exp(Y1,200)
= Exp(a + b × X1,200 + 2 × s)
= Exp(a + b × 1,744 + 2 × s)
= Exp(6.3095 + -0.0012 × 1,744 + 2 × 0.0211)
= Exp(4.2676)
= $71.35

Bottom border of price channel:

Exp(Y1,200)
= Exp(a + b × X1,200 – 2 × s)
= Exp(a + b × 1,744 – 2 × s)
= Exp(6.3095 + -0.0012 × 1,744 – 2 × 0.0211)
= Exp(4.1833)
= $65.58

November 20, 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(6.3095 + -0.0012 × 1,826 + 2 × 0.0211)
= Exp(4.1696)
= $64.69

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.3095 + -0.0012 × 1,826 – 2 × 0.0211)
= Exp(4.0853)
= $59.46

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 35.35% per annum.
  • ES price at the close of November 20, 2024 was inside the secondary price channel.