Stock Price Trends

WisdomTree Inc. (WT)

None

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 44.73% per annum.
  • WT price at the close of November 19, 2024 was $11.55 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 73.67% per annum.
  • WT 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 WT 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: August 17, 2022
End date: November 19, 2024

a = 0.5204

b = 0.0010

s = 0.0750

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.73%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0750) – 1
= 34.96%

August 17, 2022 calculations

Top border of price channel:

Exp(Y689)
= Exp(a + b × X689 + 2 × s)
= Exp(a + b × 1,001 + 2 × s)
= Exp(0.5204 + 0.0010 × 1,001 + 2 × 0.0750)
= Exp(1.6842)
= $5.39

Bottom border of price channel:

Exp(Y689)
= Exp(a + b × X689 – 2 × s)
= Exp(a + b × 1,001 – 2 × s)
= Exp(0.5204 + 0.0010 × 1,001 – 2 × 0.0750)
= Exp(1.3844)
= $3.99

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(0.5204 + 0.0010 × 1,826 + 2 × 0.0750)
= Exp(2.5198)
= $12.43

Bottom border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.5204 + 0.0010 × 1,826 – 2 × 0.0750)
= Exp(2.2200)
= $9.21

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 44.73% per annum.
  • WT price at the close of November 19, 2024 was $11.55 and was inside the primary price channel.

Secondary Trend

Start date: October 19, 2023
End date: November 19, 2024

a = -0.3119

b = 0.0015

s = 0.0720

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 73.67%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0720) – 1
= 33.36%

October 19, 2023 calculations

Top border of price channel:

Exp(Y972)
= Exp(a + b × X972 + 2 × s)
= Exp(a + b × 1,429 + 2 × s)
= Exp(-0.3119 + 0.0015 × 1,429 + 2 × 0.0720)
= Exp(1.9932)
= $7.34

Bottom border of price channel:

Exp(Y972)
= Exp(a + b × X972 – 2 × s)
= Exp(a + b × 1,429 – 2 × s)
= Exp(-0.3119 + 0.0015 × 1,429 – 2 × 0.0720)
= Exp(1.7052)
= $5.50

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-0.3119 + 0.0015 × 1,826 + 2 × 0.0720)
= Exp(2.5935)
= $13.38

Bottom border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-0.3119 + 0.0015 × 1,826 – 2 × 0.0720)
= Exp(2.3056)
= $10.03

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 73.67% per annum.
  • WT price at the close of November 19, 2024 was inside the secondary price channel.