Stock Price Trends

Quaker Chemical Corporation (KWR)

Quaker Chemical Corporation develops, produces and markets a variety of specialty chemicals formulated for a wide range of heavy manufacturing and industrial applications. The company is headquartered in Conshohocken, Pennsylvania.

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 27.27% per annum.
  • KWR price at the close of November 20, 2024 was $164.93 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.77% per annum.
  • KWR 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 KWR 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: December 14, 2023
End date: November 5, 2024

a = 6.6357

b = -0.0009

s = 0.0359

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -27.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0359) – 1
= 15.44%

December 14, 2023 calculations

Top border of price channel:

Exp(Y1,022)
= Exp(a + b × X1,022 + 2 × s)
= Exp(a + b × 1,484 + 2 × s)
= Exp(6.6357 + -0.0009 × 1,484 + 2 × 0.0359)
= Exp(5.4128)
= $224.25

Bottom border of price channel:

Exp(Y1,022)
= Exp(a + b × X1,022 – 2 × s)
= Exp(a + b × 1,484 – 2 × s)
= Exp(6.6357 + -0.0009 × 1,484 – 2 × 0.0359)
= Exp(5.2692)
= $194.26

November 5, 2024 calculations

Top border of price channel:

Exp(Y1,246)
= Exp(a + b × X1,246 + 2 × s)
= Exp(a + b × 1,811 + 2 × s)
= Exp(6.6357 + -0.0009 × 1,811 + 2 × 0.0359)
= Exp(5.1275)
= $168.59

Bottom border of price channel:

Exp(Y1,246)
= Exp(a + b × X1,246 – 2 × s)
= Exp(a + b × 1,811 – 2 × s)
= Exp(6.6357 + -0.0009 × 1,811 – 2 × 0.0359)
= Exp(4.9839)
= $146.05

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 27.27% per annum.
  • KWR price at the close of November 20, 2024 was $164.93 and was inside the primary price channel.

Secondary Trend

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

a = 4.9143

b = 0.0001

s = 0.0318

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.77%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0318) – 1
= 13.55%

August 5, 2024 calculations

Top border of price channel:

Exp(Y1,181)
= Exp(a + b × X1,181 + 2 × s)
= Exp(a + b × 1,719 + 2 × s)
= Exp(4.9143 + 0.0001 × 1,719 + 2 × 0.0318)
= Exp(5.1522)
= $172.82

Bottom border of price channel:

Exp(Y1,181)
= Exp(a + b × X1,181 – 2 × s)
= Exp(a + b × 1,719 – 2 × s)
= Exp(4.9143 + 0.0001 × 1,719 – 2 × 0.0318)
= Exp(5.0252)
= $152.20

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(4.9143 + 0.0001 × 1,826 + 2 × 0.0318)
= Exp(5.1631)
= $174.71

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.9143 + 0.0001 × 1,826 – 2 × 0.0318)
= Exp(5.0360)
= $153.86

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.77% per annum.
  • KWR price at the close of November 20, 2024 was inside the secondary price channel.