Stock Price Trends

GE Aerospace (GE)

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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 96.36% per annum.
  • GE price at the close of November 20, 2024 was $177.98 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 32.74% per annum.
  • GE price at the close of November 20, 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 GE 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: June 10, 2022
End date: November 14, 2024

a = 1.9422

b = 0.0018

s = 0.0861

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 96.36%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0861) – 1
= 41.09%

June 10, 2022 calculations

Top border of price channel:

Exp(Y642)
= Exp(a + b × X642 + 2 × s)
= Exp(a + b × 932 + 2 × s)
= Exp(1.9422 + 0.0018 × 932 + 2 × 0.0861)
= Exp(3.8372)
= $46.40

Bottom border of price channel:

Exp(Y642)
= Exp(a + b × X642 – 2 × s)
= Exp(a + b × 932 – 2 × s)
= Exp(1.9422 + 0.0018 × 932 – 2 × 0.0861)
= Exp(3.4930)
= $32.88

November 14, 2024 calculations

Top border of price channel:

Exp(Y1,253)
= Exp(a + b × X1,253 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(1.9422 + 0.0018 × 1,820 + 2 × 0.0861)
= Exp(5.4788)
= $239.57

Bottom border of price channel:

Exp(Y1,253)
= Exp(a + b × X1,253 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(1.9422 + 0.0018 × 1,820 – 2 × 0.0861)
= Exp(5.1346)
= $169.80

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 96.36% per annum.
  • GE price at the close of November 20, 2024 was $177.98 and was inside the primary price channel.

Secondary Trend

Start date: April 5, 2024
End date: November 20, 2024

a = 3.7989

b = 0.0008

s = 0.0370

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 32.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0370) – 1
= 15.94%

April 5, 2024 calculations

Top border of price channel:

Exp(Y1,098)
= Exp(a + b × X1,098 + 2 × s)
= Exp(a + b × 1,597 + 2 × s)
= Exp(3.7989 + 0.0008 × 1,597 + 2 × 0.0370)
= Exp(5.1122)
= $166.03

Bottom border of price channel:

Exp(Y1,098)
= Exp(a + b × X1,098 – 2 × s)
= Exp(a + b × 1,597 – 2 × s)
= Exp(3.7989 + 0.0008 × 1,597 – 2 × 0.0370)
= Exp(4.9642)
= $143.20

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(3.7989 + 0.0008 × 1,826 + 2 × 0.0370)
= Exp(5.2899)
= $198.32

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.7989 + 0.0008 × 1,826 – 2 × 0.0370)
= Exp(5.1419)
= $171.05

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 32.74% per annum.
  • GE price at the close of November 20, 2024 was inside the secondary price channel.