DEUTSCHE POST AG NA ON (DPW) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of DEUTSCHE POST AG NA ON (DPW) 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 DEUTSCHE POST AG NA ON (DPW) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of DPW Closed In Profits?
  3. How DEUTSCHE POST AG NA ON (DPW) Monthly Volumes Are Affecting Price
  4. Volume Of DPW Vs Similar Stocks
  5. How Annual Volumes Are Affecting DPW Price

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

1 How DEUTSCHE POST AG NA ON (DPW) 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.

DEUTSCHE POST AG NA ON (DPW) 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 (%)
124.980115240
532.9131.7524797115
936.0244.21275411
1334.4237.797767-33
1736.4045.727665-33
2133.1232.591284811
2528.1512.691726150
2929.0716.371865162
3331.3625.547436-35
3731.6026.54475-61
4128.9015.698545-26
4528.5014.094977-57
4925.311.329871-14

Now we are going to see if there is a relationship between weekly average volumes of DEUTSCHE POST AG NA ON (DPW) 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 DPW 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

DEUTSCHE POST AG NA ON (DPW) 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 DPW shares.

Correlation Coefficient Between DPW weekly volumes and prices = 0.03

Interpretation:

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

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2 Did 30 Highest Volume Days Of DPW 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 DEUTSCHE POST AG NA ON (DPW) resulted in profits. Below table gives you the data.

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-03-1614393436.9837.040.06Profit0.16
2018-06-089786132.5331.31-1.22Loss-3.75
2018-02-066624335.437.371.97Profit5.56
2018-05-085344635.8334.63-1.20Loss-3.35
2018-06-124699830.2729.56-0.71Loss-2.35
2018-06-11425433130.27-0.73Loss-2.35
2018-07-234029828.9528.36-0.59Loss-2.04
2018-10-234025428.3928-0.39Loss-1.37
2018-02-073883237.5437.830.29Profit0.77
2018-10-113700028.0428.130.09Profit0.32
2018-05-143600734.6334.39-0.24Loss-0.69
2018-06-143582829.5330.40.87Profit2.95
2018-08-073577929.1130.721.61Profit5.53
2018-11-202973728.0828-0.08Loss-0.28
2018-07-112941728.1827.94-0.24Loss-0.85
2018-05-312897333.432.49-0.91Loss-2.72
2018-10-052861130.129.58-0.52Loss-1.73
2018-09-062846730.5630.830.27Profit0.88
2019-01-152748525.3324.65-0.68Loss-2.68
2018-05-092736634.6834.19-0.49Loss-1.41
2018-10-082671029.6828.96-0.72Loss-2.43
2018-06-062666733.0632.95-0.11Loss-0.33
2018-06-132625629.5929.56-0.03Loss-0.10
2018-12-192605424.824.3-0.50Loss-2.02
2018-07-102530227.9828.350.37Profit1.32
2018-06-272454828.1528.07-0.08Loss-0.28
2018-06-252312129.2328.42-0.81Loss-2.77
2018-07-262304029.129.810.71Profit2.44
2018-11-052228728.1627.88-0.28Loss-0.99
2019-01-182119525.2125.850.64Profit2.54

3 How DEUTSCHE POST AG NA ON (DPW) 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 (%)
2019-225.84059620
2019-125.29-2.131043875
2018-1225.45-1.5112823115
2018-1128.359.71730823
2018-1028.8711.7312376108
2018-931.1420.515784-3
2018-830.9219.66892850
2018-728.5410.4514048136
2018-630.2717.1421925268
2018-534.4133.1714226139
2018-435.6437.93771429
2018-335.2336.3417336191
2018-235.9839.2413407125

The correlation between the monthly volume and price turns out to be 0.23. Therefore we have a week positive correlation, Meaning - If volume increases price increases but not always.

4 Volume Of DPW 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 DPW compared to 5 similar stocks in recent 52 weeks.

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
AB1AIR BERLIN PLC EO -,25379650.020.050.01
DPWDEUTSCHE POST AG NA ON 120933137.0823.56
HHFAHAMBURG.HAFEN U.LOG.A-SP90819.3522.2216.92
AVESAVES ONE AG O.N.7107.019.055.15
FRAFRAPORT AG FFM.AIRPORT33975.9188.4160.94
HLAGHAPAG-LLOYD NA. O.N.25331.6337.5421.54

As you can see in the above table, DEUTSCHE POST AG NA ON (DPW) can be ranked secon on volume scale.

5 How Annual Volumes Are Affecting DPW 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 (%)
200016.42013052600
200113.32-18.8897041-93
20029.56-41.7869711-95
20039.67-41.1162345-95
200412.96-21.0759101-95
200514.46-11.9465879-95
200616.24-1.177726-94
200717.57755731-96
200813.15-19.9138448-97
20098.19-50.1236761-97
201010.00-39.133664-97
20119.54-41.945767-96
201212.14-26.0745179-97
201318.1510.5450315-96
201423.2441.5325007-98
201525.3654.4519974-98
201625.1152.9212615-99
201733.41103.4711411-99
201831.8994.2112061-99
201925.3554.389900-99

The correlation coefficient between the volume and price is -0.08. 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
Weekly0.03week positive
Monthly0.23week positive
Yearly-0.08week 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 DPW 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. DPW 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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