Goodyear Tire & Rubber Co (GT)
Goodyear Tire & Rubber Company develops, manufactures, distributes and sells tires and related products and services worldwide. The company is headquartered in Akron, Ohio.
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 27.11% per annum.
- GT price at the close of November 20, 2024 was $9.07 and was higher than the top border of the primary price channel by $0.60 (7.05%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 1.09% per annum.
- GT price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $1.04 (10.31%). This indicates a possible reversal in the secondary trend direction.
- 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 GT 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: February 22, 2021
End date: May 10, 2023
a = 3.4209
b = -0.0009
s = 0.1490
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -27.11%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1490) – 1
= 81.46%
February 22, 2021 calculations
Top border of price channel:
Exp(Y313)
= Exp(a + b × X313 + 2 × s)
= Exp(a + b × 459 + 2 × s)
= Exp(3.4209 + -0.0009 × 459 + 2 × 0.1490)
= Exp(3.3212)
= $27.69
Bottom border of price channel:
Exp(Y313)
= Exp(a + b × X313 – 2 × s)
= Exp(a + b × 459 – 2 × s)
= Exp(3.4209 + -0.0009 × 459 – 2 × 0.1490)
= Exp(2.7254)
= $15.26
May 10, 2023 calculations
Top border of price channel:
Exp(Y871)
= Exp(a + b × X871 + 2 × s)
= Exp(a + b × 1,266 + 2 × s)
= Exp(3.4209 + -0.0009 × 1,266 + 2 × 0.1490)
= Exp(2.6221)
= $13.76
Bottom border of price channel:
Exp(Y871)
= Exp(a + b × X871 – 2 × s)
= Exp(a + b × 1,266 – 2 × s)
= Exp(3.4209 + -0.0009 × 1,266 – 2 × 0.1490)
= Exp(2.0262)
= $7.59
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 27.11% per annum.
- GT price at the close of November 20, 2024 was $9.07 and was higher than the top border of the primary price channel by $0.60 (7.05%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 22, 2022
End date: July 31, 2024
a = 2.4803
b = 0.0000
s = 0.1105
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 1.09%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1105) – 1
= 55.56%
February 22, 2022 calculations
Top border of price channel:
Exp(Y566)
= Exp(a + b × X566 + 2 × s)
= Exp(a + b × 824 + 2 × s)
= Exp(2.4803 + 0.0000 × 824 + 2 × 0.1105)
= Exp(2.7258)
= $15.27
Bottom border of price channel:
Exp(Y566)
= Exp(a + b × X566 – 2 × s)
= Exp(a + b × 824 – 2 × s)
= Exp(2.4803 + 0.0000 × 824 – 2 × 0.1105)
= Exp(2.2839)
= $9.82
July 31, 2024 calculations
Top border of price channel:
Exp(Y1,178)
= Exp(a + b × X1,178 + 2 × s)
= Exp(a + b × 1,714 + 2 × s)
= Exp(2.4803 + 0.0000 × 1,714 + 2 × 0.1105)
= Exp(2.7523)
= $15.68
Bottom border of price channel:
Exp(Y1,178)
= Exp(a + b × X1,178 – 2 × s)
= Exp(a + b × 1,714 – 2 × s)
= Exp(2.4803 + 0.0000 × 1,714 – 2 × 0.1105)
= Exp(2.3105)
= $10.08
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 1.09% per annum.
- GT price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $1.04 (10.31%). This indicates a possible reversal in the secondary trend direction.