Stock Price Trends

Norwegian Cruise Line Holdings Ltd (NCLH)

Norwegian Cruise Line Holdings Ltd., is a cruise company in North America, Europe, Asia-Pacific and internationally. The company is headquartered in Miami, Florida.

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 25.85% per annum.
  • NCLH price at the close of March 31, 2025 was $18.96 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 96.91% per annum.
  • NCLH price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $0.48 (2.58%). 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 NCLH 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 9, 2022
End date: March 5, 2025

a = 2.0259

b = 0.0006

s = 0.1404

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 25.85%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1404) – 1
= 75.31%

June 9, 2022 calculations

Top border of price channel:

Exp(Y552)
= Exp(a + b × X552 + 2 × s)
= Exp(a + b × 799 + 2 × s)
= Exp(2.0259 + 0.0006 × 799 + 2 × 0.1404)
= Exp(2.8100)
= $16.61

Bottom border of price channel:

Exp(Y552)
= Exp(a + b × X552 – 2 × s)
= Exp(a + b × 799 – 2 × s)
= Exp(2.0259 + 0.0006 × 799 – 2 × 0.1404)
= Exp(2.2486)
= $9.47

March 5, 2025 calculations

Top border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(2.0259 + 0.0006 × 1,799 + 2 × 0.1404)
= Exp(3.4399)
= $31.18

Bottom border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(2.0259 + 0.0006 × 1,799 – 2 × 0.1404)
= Exp(2.8785)
= $17.79

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 25.85% per annum.
  • NCLH price at the close of March 31, 2025 was $18.96 and was inside the primary price channel.

Secondary Trend

Start date: January 28, 2025
End date: March 19, 2025

a = 20.2082

b = -0.0095

s = 0.0494

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0095) – 1
= -96.91%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0494) – 1
= 21.87%

January 28, 2025 calculations

Top border of price channel:

Exp(Y1,212)
= Exp(a + b × X1,212 + 2 × s)
= Exp(a + b × 1,763 + 2 × s)
= Exp(20.2082 + -0.0095 × 1,763 + 2 × 0.0494)
= Exp(3.5077)
= $33.37

Bottom border of price channel:

Exp(Y1,212)
= Exp(a + b × X1,212 – 2 × s)
= Exp(a + b × 1,763 – 2 × s)
= Exp(20.2082 + -0.0095 × 1,763 – 2 × 0.0494)
= Exp(3.3099)
= $27.38

March 19, 2025 calculations

Top border of price channel:

Exp(Y1,247)
= Exp(a + b × X1,247 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(20.2082 + -0.0095 × 1,813 + 2 × 0.0494)
= Exp(3.0312)
= $20.72

Bottom border of price channel:

Exp(Y1,247)
= Exp(a + b × X1,247 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(20.2082 + -0.0095 × 1,813 – 2 × 0.0494)
= Exp(2.8335)
= $17.00

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 96.91% per annum.
  • NCLH price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $0.48 (2.58%). This indicates a possible reversal in the secondary trend direction.