Stock Price Trends

PPG Industries Inc (PPG)

PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.

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 21.86% per annum.
  • PPG price at the close of November 20, 2024 was $121.29 and was higher than the top border of the primary price channel by $0.96 (0.80%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 6.94% per annum.
  • PPG 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 PPG 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: November 30, 2023
End date: August 23, 2024

a = 5.9785

b = -0.0007

s = 0.0229

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -21.86%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0229) – 1
= 9.60%

November 30, 2023 calculations

Top border of price channel:

Exp(Y1,012)
= Exp(a + b × X1,012 + 2 × s)
= Exp(a + b × 1,470 + 2 × s)
= Exp(5.9785 + -0.0007 × 1,470 + 2 × 0.0229)
= Exp(5.0308)
= $153.06

Bottom border of price channel:

Exp(Y1,012)
= Exp(a + b × X1,012 – 2 × s)
= Exp(a + b × 1,470 – 2 × s)
= Exp(5.9785 + -0.0007 × 1,470 – 2 × 0.0229)
= Exp(4.9392)
= $139.66

August 23, 2024 calculations

Top border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 + 2 × s)
= Exp(a + b × 1,737 + 2 × s)
= Exp(5.9785 + -0.0007 × 1,737 + 2 × 0.0229)
= Exp(4.8504)
= $127.79

Bottom border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 – 2 × s)
= Exp(a + b × 1,737 – 2 × s)
= Exp(5.9785 + -0.0007 × 1,737 – 2 × 0.0229)
= Exp(4.7587)
= $116.60

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 21.86% per annum.
  • PPG price at the close of November 20, 2024 was $121.29 and was higher than the top border of the primary price channel by $0.96 (0.80%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 12, 2024
End date: November 20, 2024

a = 5.1810

b = -0.0002

s = 0.0268

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -6.94%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0268) – 1
= 11.32%

April 12, 2024 calculations

Top border of price channel:

Exp(Y1,103)
= Exp(a + b × X1,103 + 2 × s)
= Exp(a + b × 1,604 + 2 × s)
= Exp(5.1810 + -0.0002 × 1,604 + 2 × 0.0268)
= Exp(4.9184)
= $136.79

Bottom border of price channel:

Exp(Y1,103)
= Exp(a + b × X1,103 – 2 × s)
= Exp(a + b × 1,604 – 2 × s)
= Exp(5.1810 + -0.0002 × 1,604 – 2 × 0.0268)
= Exp(4.8112)
= $122.88

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(5.1810 + -0.0002 × 1,826 + 2 × 0.0268)
= Exp(4.8747)
= $130.93

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.1810 + -0.0002 × 1,826 – 2 × 0.0268)
= Exp(4.7674)
= $117.62

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 6.94% per annum.
  • PPG price at the close of November 20, 2024 was inside the secondary price channel.