Stock Price Trends

Ready Capital Corp (RC)

Ready Capital Corporation, is a real estate finance company in the United States. The company is headquartered in New York, New York.

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 8.74% per annum.
  • RC price at the close of January 27, 2025 was $6.90 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 16.74% per annum.
  • RC price at the close of January 27, 2025 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 RC 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 4, 2021
End date: January 27, 2025

a = 2.4495

b = -0.0003

s = 0.0704

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -8.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0704) – 1
= 32.50%

June 4, 2021 calculations

Top border of price channel:

Exp(Y341)
= Exp(a + b × X341 + 2 × s)
= Exp(a + b × 493 + 2 × s)
= Exp(2.4495 + -0.0003 × 493 + 2 × 0.0704)
= Exp(2.4667)
= $11.78

Bottom border of price channel:

Exp(Y341)
= Exp(a + b × X341 – 2 × s)
= Exp(a + b × 493 – 2 × s)
= Exp(2.4495 + -0.0003 × 493 – 2 × 0.0704)
= Exp(2.1853)
= $8.89

January 27, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.4495 + -0.0003 × 1,826 + 2 × 0.0704)
= Exp(2.1328)
= $8.44

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.4495 + -0.0003 × 1,826 – 2 × 0.0704)
= Exp(1.8513)
= $6.37

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 8.74% per annum.
  • RC price at the close of January 27, 2025 was $6.90 and was inside the primary price channel.

Secondary Trend

Start date: June 12, 2023
End date: January 27, 2025

a = 2.8439

b = -0.0005

s = 0.0496

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0005) – 1
= -16.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0496) – 1
= 21.94%

June 12, 2023 calculations

Top border of price channel:

Exp(Y849)
= Exp(a + b × X849 + 2 × s)
= Exp(a + b × 1,231 + 2 × s)
= Exp(2.8439 + -0.0005 × 1,231 + 2 × 0.0496)
= Exp(2.3252)
= $10.23

Bottom border of price channel:

Exp(Y849)
= Exp(a + b × X849 – 2 × s)
= Exp(a + b × 1,231 – 2 × s)
= Exp(2.8439 + -0.0005 × 1,231 – 2 × 0.0496)
= Exp(2.1269)
= $8.39

January 27, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.8439 + -0.0005 × 1,826 + 2 × 0.0496)
= Exp(2.0266)
= $7.59

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.8439 + -0.0005 × 1,826 – 2 × 0.0496)
= Exp(1.8282)
= $6.22

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 16.74% per annum.
  • RC price at the close of January 27, 2025 was inside the secondary price channel.