BAYMOTOREN WERKE VZO (BMW3) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of BAYMOTOREN WERKE VZO (BMW3) stock on the share prices (and gains). After reading the report, you will be in a better position to assess the future impact of volumes on prices.

Note: Volume is a measure of the total number of shares traded in the market. These are the tiny bars you will see at the bottom of the conventional price charts.

Below is a table of contents to help you navigate through the report. There are 5 sections in this analysis report.

  1. How BAYMOTOREN WERKE VZO (BMW3) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of BMW3 Closed In Profits?
  3. How BAYMOTOREN WERKE VZO (BMW3) Monthly Volumes Are Affecting Price
  4. Volume Of BMW3 Vs Similar Stocks
  5. How Annual Volumes Are Affecting BMW3 Price

Note: Do you want to know the best performing days, months and weeks of BMW3 recently. We recommend you to read the 52-week highs/lows report for BMW3.

1 How BAYMOTOREN WERKE VZO (BMW3) Weekly Volumes Are Affecting Price

First, let us see a graph representing the weekly prices and volumes for the recent 52 weeks between 05-02-2018 and 05-02-2019.

Note: Since prices and volumes are on different scales, we have plotted the percentage change in volumes against the percentage change in prices. In other words, each value denotes the difference (%) between the spot volume/price and the initial volume/price at the start of the graph.

BAYMOTOREN WERKE VZO (BMW3) Stcok Current Year Volumes By Weekly

Note: To understand how we created the above graph, here is a table showing sample data.

WeekPrice (Avg.) (€)Price Change (%)Volumes (Avg.)Volume Change (%)
163.1309010
569.9510.81990121
968.598.652418168
1373.3316.16177897
1775.8720.182560184
2175.3619.37127942
2567.877.513631303
2970.6411.9165383
3371.1712.74654-27
3772.4214.72898-0
4165.623.94153170
4565.153.2114928
4964.201.69873-3

Now we are going to see if there is a relationship between weekly average volumes of BAYMOTOREN WERKE VZO (BMW3) shares with that of the stock prices. We are going to check the "Correlation" between weekly volumes and prices.

Note: If the word correlation is new to you, here is a simple explanation. Correlation is a technique that apart from other things gives out a number called the correlation coefficient. This coefficient is a measure of how two variables (in our case price and volume) are related. The coefficient can assume values between -1 to +1. Before measuring the coefficient for BMW3 shares, below is a table that will guide to interpret the value.

Value Interpretation
-1 to -0.5. If volume decreases price increases almost always
-0.5 to 0 If volume decreases price increases but not always
0 There is no relationship between volume and price
0 to 0.5 If volume increases price increases but not always
.5 to 1 If volume increases price increases almost always

BAYMOTOREN WERKE VZO (BMW3) Stock's Price-Volume Correlation Coefficient

We are not going show you the elaborate method of finding the correlation coefficient. (You can read about the method in math books.) Instead, we will straightaway let you know the value between the average volume and price of BMW3 shares.

Correlation Coefficient Between BMW3 weekly volumes and prices = 0.33

Interpretation:

0.33 indicates a week positive correlation, if volume increases price increases but not always.

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2 Did 30 Highest Volume Days Of BMW3 Closed In Profits?

Note: *This section uses close and not adjusted close.

High volume corresponds to a high interest over a stock. There can be multiple reasons for people showing extraordinary interest towards a share. Positive news like higher than expected earnings will most certainly increase volumes and prices. Negative news like lower than expected profits and tax hikes can again lead to an increase in volumes (but there will be more selling than buying).

Now let us check if the top 30 highest volume days of BAYMOTOREN WERKE VZO (BMW3) resulted in profits. Below table gives you the data.

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-12-03848965.666.450.85Profit1.30
2018-06-29839067.968.150.25Profit0.37
2018-05-16742781.3581.2-0.15Loss-0.18
2018-11-08664165.1564.8-0.35Loss-0.54
2018-03-16595173.372.65-0.65Loss-0.89
2018-07-03585968.968.35-0.55Loss-0.80
2018-05-15585480.981.50.60Profit0.74
2018-03-23566372.9572.7-0.25Loss-0.34
2018-06-21531971.5570.4-1.15Loss-1.61
2018-07-20506769.668.25-1.35Loss-1.94
2018-07-26461473.7571.5-2.25Loss-3.05
2018-03-26456072.2573.81.55Profit2.15
2018-03-05442072.771.75-0.95Loss-1.31
2018-02-05393377.7576.2-1.55Loss-1.99
2018-03-2138687374.251.25Profit1.71
2018-05-03374780.2579.6-0.65Loss-0.81
2018-02-06348371.8575.94.05Profit5.64
2018-09-25347672.0568.05-4.00Loss-5.55
2018-04-10342677.978.150.25Profit0.32
2018-03-07317871.672.10.50Profit0.70
2018-05-11315580.280.70.50Profit0.62
2018-03-19309572.672.4-0.20Loss-0.28
2018-05-31303875.474.7-0.70Loss-0.93
2018-09-26299768.0568.40.35Profit0.51
2018-04-24286079.8579.4-0.45Loss-0.56
2018-06-27281667.6680.40Profit0.59
2018-03-27279774.4574.15-0.30Loss-0.40
2018-02-23273375.374.2-1.10Loss-1.46
2018-05-04273080.378.9-1.40Loss-1.74
2018-11-16271966.465-1.40Loss-2.11

3 How BAYMOTOREN WERKE VZO (BMW3) Monthly Volumes Are Affecting Price

This section is similar to the third section except that now we are going to check the impact of monthly volumes. The timeframe of analysis is similar to that of the first section. We have considered recent 52 weeks of data between 05-02-2018 and 05-02-2019.

Below is the graph showing the monthly volume against monthly price. The graph shows the change (%) in volume against the change (%) in price for you to understand better.

10 Months Price, Volumes Chart -

A sample of data used to create the above graph is shown below.

MonthPrice (€)Price Change (%)VolumesVolume Change (%)
2019-264.4304600
2019-163.24-1.8565142
2018-1263.96-0.731219165
2018-1165.551.741166153
2018-1066.022.471294181
2018-970.529.451103140
2018-871.7711.3979573
2018-769.608.021414207
2018-672.5812.652102357
2018-576.4218.612315403
2018-474.6115.81630254
2018-369.537.922608467
2018-271.7511.362038343

The correlation between the monthly volume and price turns out to be 0.64. Therefore we have a strong positive correlation, Meaning - If volume increases price increases almost always.

4 Volume Of BMW3 Vs Similar Stocks

You already know that volume is a measure of interest in a particular stock. The reason may be good or bad. The higher than average volume can drive prices up or down depending upon the amount of selling compared to buying. This section compares the interest shown by investors in BMW3 compared to 5 similar stocks in recent 52 weeks.

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
BMWBAY.MOTOREN WERKE AG ST355680.2190.5669.34
BMW3BAYMOTOREN WERKE VZO 15037078.7060.30
CONCONTINENTAL AG O.N.1400179.35228.40119.70
ASLAKASOL AG39944.8855.2032.00
BKS3BBS KRAFTFAHR.TEC.VZO O.N2560.020.130.00
BDTBERTRANDT AG O.N.16583.80101.4465.00

As you can see in the above table, BAYMOTOREN WERKE VZO (BMW3) can be ranked secon on volume scale.

5 How Annual Volumes Are Affecting BMW3 Price

This section is similar to the first and third sections. The first section checked the impact of weekly volume on prices while the second section analyzed the impact of monthly volumes. Now we are going to check the impact of annual average volumes. Below is the volume-change vs price-change graph.

10 Year Volumes Chart -

Below table lists a sample of data used to draw the above graph.

YearPrice (Avg.) (€)Price Change (%)Volumes (Avg.)Volume Change (%)
200725.49014520
200816.38-35.743324129
20099.28-63.59959-34
201020.69-18.833404134
201128.039.964200189
201232.0825.85277091
201343.8071.83228357
201455.46117.58205842
201564.42152.733293127
201659.04131.62244769
201768.10167.16195335
201870.34175.95166615
201963.38148.65628-57

The correlation coefficient between the volume and price is -0.24. This is a week negative correlation, Meaning - If volume decreases price increases but not always.

Summary of correlation coefficients of weekly, monthly and annual volumes against price.

Volume Averaged OverCoefficientMeaning
Weekly0.33week positive
Monthly0.64strong positive
Yearly-0.24week negative

Conclusion :

Volume is an important metric in combination with the price to assess the trend of a stock. For example, if a stock moves steadily up but is associated with feeble volumes, the movement may not be sustainable. On the other hand, if the stock is moving up while the volume is also increasing steadily, the movement will be a sustainable bullish run. Therefore volume plays a key role in assessing the sustainability of a trend.

Recommended Reading:

  1. We strongly recommend you to go through the BMW3 Trend Analysis report. That report uses an interesting method involving moving averages to assess trends.
  2. The expectation of a stock rising is the prime reason why investors are behind it. BMW3 Stock Rise report will help you know whether the stock is on the rise lately.

Disclaimer:

We have validated the data to the best of our knowledge. If you find data inaccuracies kindly let us know using the contact form so that we can act promptly.

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