Stock Price Trends

RLI Corp (RLI)

RLI Corp. The company is headquartered in Peoria, Illinois.

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 57.40% per annum.
  • RLI price at the close of November 19, 2024 was $174.74 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 976.25% per annum.
  • RLI 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 RLI 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 11, 2024
End date: November 19, 2024

a = 2.8486

b = 0.0012

s = 0.0232

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 57.40%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0232) – 1
= 9.71%

June 11, 2024 calculations

Top border of price channel:

Exp(Y1,145)
= Exp(a + b × X1,145 + 2 × s)
= Exp(a + b × 1,665 + 2 × s)
= Exp(2.8486 + 0.0012 × 1,665 + 2 × 0.0232)
= Exp(4.9641)
= $143.18

Bottom border of price channel:

Exp(Y1,145)
= Exp(a + b × X1,145 – 2 × s)
= Exp(a + b × 1,665 – 2 × s)
= Exp(2.8486 + 0.0012 × 1,665 – 2 × 0.0232)
= Exp(4.8714)
= $130.51

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(2.8486 + 0.0012 × 1,826 + 2 × 0.0232)
= Exp(5.1642)
= $174.89

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.8486 + 0.0012 × 1,826 – 2 × 0.0232)
= Exp(5.0715)
= $159.42

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 57.40% per annum.
  • RLI price at the close of November 19, 2024 was $174.74 and was inside the primary price channel.

Secondary Trend

Start date: October 25, 2024
End date: November 19, 2024

a = -6.6967

b = 0.0065

s = 0.0189

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0065) – 1
= 976.25%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0189) – 1
= 7.84%

October 25, 2024 calculations

Top border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 + 2 × s)
= Exp(a + b × 1,801 + 2 × s)
= Exp(-6.6967 + 0.0065 × 1,801 + 2 × 0.0189)
= Exp(5.0651)
= $158.40

Bottom border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 – 2 × s)
= Exp(a + b × 1,801 – 2 × s)
= Exp(-6.6967 + 0.0065 × 1,801 – 2 × 0.0189)
= Exp(4.9897)
= $146.89

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(-6.6967 + 0.0065 × 1,826 + 2 × 0.0189)
= Exp(5.2279)
= $186.39

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-6.6967 + 0.0065 × 1,826 – 2 × 0.0189)
= Exp(5.1524)
= $172.85

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 976.25% per annum.
  • RLI price at the close of November 19, 2024 was inside the secondary price channel.