Stock Price Trends

Selective Insurance Group Inc (SIGI)

Selective Insurance Group, Inc., offers insurance products and services in the United States. The company is headquartered in Branchville, New Jersey.

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 9.69% per annum.
  • SIGI price at the close of November 20, 2024 was $95.98 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 48.42% per annum.
  • SIGI 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 SIGI 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: July 20, 2023
End date: November 5, 2024

a = 5.0160

b = -0.0003

s = 0.0408

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -9.69%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0408) – 1
= 17.74%

July 20, 2023 calculations

Top border of price channel:

Exp(Y919)
= Exp(a + b × X919 + 2 × s)
= Exp(a + b × 1,337 + 2 × s)
= Exp(5.0160 + -0.0003 × 1,337 + 2 × 0.0408)
= Exp(4.7242)
= $112.64

Bottom border of price channel:

Exp(Y919)
= Exp(a + b × X919 – 2 × s)
= Exp(a + b × 1,337 – 2 × s)
= Exp(5.0160 + -0.0003 × 1,337 – 2 × 0.0408)
= Exp(4.5609)
= $95.67

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(5.0160 + -0.0003 × 1,811 + 2 × 0.0408)
= Exp(4.5918)
= $98.68

Bottom border of price channel:

Exp(Y1,246)
= Exp(a + b × X1,246 – 2 × s)
= Exp(a + b × 1,811 – 2 × s)
= Exp(5.0160 + -0.0003 × 1,811 – 2 × 0.0408)
= Exp(4.4285)
= $83.81

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 9.69% per annum.
  • SIGI price at the close of November 20, 2024 was $95.98 and was inside the primary price channel.

Secondary Trend

Start date: July 19, 2024
End date: November 20, 2024

a = 2.6024

b = 0.0011

s = 0.0249

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 48.42%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0249) – 1
= 10.47%

July 19, 2024 calculations

Top border of price channel:

Exp(Y1,170)
= Exp(a + b × X1,170 + 2 × s)
= Exp(a + b × 1,702 + 2 × s)
= Exp(2.6024 + 0.0011 × 1,702 + 2 × 0.0249)
= Exp(4.4933)
= $89.42

Bottom border of price channel:

Exp(Y1,170)
= Exp(a + b × X1,170 – 2 × s)
= Exp(a + b × 1,702 – 2 × s)
= Exp(2.6024 + 0.0011 × 1,702 – 2 × 0.0249)
= Exp(4.3938)
= $80.95

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(2.6024 + 0.0011 × 1,826 + 2 × 0.0249)
= Exp(4.6275)
= $102.26

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.6024 + 0.0011 × 1,826 – 2 × 0.0249)
= Exp(4.5279)
= $92.57

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 48.42% per annum.
  • SIGI price at the close of November 20, 2024 was inside the secondary price channel.