Stock Price Trends

Humana Inc (HUM)

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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 26.22% per annum.
  • HUM price at the close of November 19, 2024 was $277.78 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 72.36% per annum.
  • HUM price at the close of November 19, 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 HUM 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 24, 2022
End date: November 19, 2024

a = 7.2411

b = -0.0008

s = 0.1028

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -26.22%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1028) – 1
= 50.88%

October 24, 2022 calculations

Top border of price channel:

Exp(Y736)
= Exp(a + b × X736 + 2 × s)
= Exp(a + b × 1,069 + 2 × s)
= Exp(7.2411 + -0.0008 × 1,069 + 2 × 0.1028)
= Exp(6.5561)
= $703.49

Bottom border of price channel:

Exp(Y736)
= Exp(a + b × X736 – 2 × s)
= Exp(a + b × 1,069 – 2 × s)
= Exp(7.2411 + -0.0008 × 1,069 – 2 × 0.1028)
= Exp(6.1447)
= $466.26

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(7.2411 + -0.0008 × 1,826 + 2 × 0.1028)
= Exp(5.9253)
= $374.40

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.2411 + -0.0008 × 1,826 – 2 × 0.1028)
= Exp(5.5140)
= $248.15

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 26.22% per annum.
  • HUM price at the close of November 19, 2024 was $277.78 and was inside the primary price channel.

Secondary Trend

Start date: July 8, 2024
End date: November 19, 2024

a = 11.9525

b = -0.0035

s = 0.0742

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0035) – 1
= -72.36%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0742) – 1
= 34.55%

July 8, 2024 calculations

Top border of price channel:

Exp(Y1,162)
= Exp(a + b × X1,162 + 2 × s)
= Exp(a + b × 1,692 + 2 × s)
= Exp(11.9525 + -0.0035 × 1,692 + 2 × 0.0742)
= Exp(6.1398)
= $463.94

Bottom border of price channel:

Exp(Y1,162)
= Exp(a + b × X1,162 – 2 × s)
= Exp(a + b × 1,692 – 2 × s)
= Exp(11.9525 + -0.0035 × 1,692 – 2 × 0.0742)
= Exp(5.8430)
= $344.81

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(11.9525 + -0.0035 × 1,826 + 2 × 0.0742)
= Exp(5.6677)
= $289.36

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(11.9525 + -0.0035 × 1,826 – 2 × 0.0742)
= Exp(5.3709)
= $215.05

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 72.36% per annum.
  • HUM price at the close of November 19, 2024 was inside the secondary price channel.