FABASOFT AG (FAA) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of FABASOFT AG (FAA) 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.

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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 FABASOFT AG (FAA) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of FAA Closed In Profits?
  3. How FABASOFT AG (FAA) Monthly Volumes Are Affecting Price
  4. Volume Of FAA Vs Similar Stocks
  5. How Annual Volumes Are Affecting FAA Price

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

1 How FABASOFT AG (FAA) 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.

FABASOFT AG (FAA) 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 (%)
212.150710
613.6011.9311831566
1014.1316.3524638
1412.886.01550675
1813.138.07347389
2312.996.91448531
2712.00-1.23615766
3113.3910.21279293
3513.9314.65229223
3915.5027.5715462077
4312.603.760-15
4712.825.51250252

Now we are going to see if there is a relationship between weekly average volumes of FABASOFT AG (FAA) 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 FAA 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

FABASOFT AG (FAA) 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 FAA shares.

Correlation Coefficient Between FAA weekly volumes and prices = 0.44

Interpretation:

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

2 Did 30 Highest Volume Days Of FAA 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 FABASOFT AG (FAA) resulted in profits. Below table gives you the data.

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-09-131562515150.00Profit0.00
2019-01-25483412.5512.850.30Profit2.39
2018-08-27463114.114.40.30Profit2.13
2018-09-14303015.3515.50.15Profit0.98
2018-02-06295213.713.80.10Profit0.73
2018-02-14290013.0513.30.25Profit1.92
2018-03-05240013.614.250.65Profit4.78
2018-02-21220013.7514.30.55Profit4.00
2018-03-01211515.5514.75-0.80Loss-5.14
2018-02-05206114.7514.25-0.50Loss-3.39
2018-08-30182813.7513.6-0.15Loss-1.09
2018-06-07175013.313.70.40Profit3.01
2018-10-0515461615.5-0.50Loss-3.12
2018-06-22143012.6512.45-0.20Loss-1.58
2018-02-12141513.4513.35-0.10Loss-0.74
2018-04-23140013.5513.05-0.50Loss-3.69
2018-03-08133013.813.75-0.05Loss-0.36
2018-04-25120012.7512.5-0.25Loss-1.96
2018-10-11118813.112.85-0.25Loss-1.91
2018-06-06118612.4513.30.85Profit6.83
2018-09-27117015.515.70.20Profit1.29
2018-06-13116213.412.8-0.60Loss-4.48
2018-12-17115612.5130.50Profit4.00
2018-08-15115013.2513.90.65Profit4.91
2018-03-28110413.4513-0.45Loss-3.35
2018-09-1910991515.40.40Profit2.67
2018-08-28102014.7514.4-0.35Loss-2.37
2018-03-23101013.313.50.20Profit1.50
2018-08-29100014.414-0.40Loss-2.78
2018-10-23100012.712.55-0.15Loss-1.18

3 How FABASOFT AG (FAA) 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 (%)
2019-213.4505000
2019-112.61-6.2572445
2018-1212.31-8.48464-7
2018-1112.97-3.57236-53
2018-1013.480.2276052
2018-914.9711.31380176
2018-813.661.5673948
2018-712.33-8.33338-32
2018-612.72-5.4364329
2018-513.00-3.35336-33
2018-412.88-4.2458016
2018-313.933.5780260
2018-214.004.091123125

The correlation between the monthly volume and price turns out to be 0.81. Therefore we have a strong positive correlation, Meaning - If volume increases price increases almost always.

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

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
ARXTDMI AG O.N.10030.020.060.00
A6TARTEC TECHNOLOGIES O.N.9964.686.953.62
FAAFABASOFT AG 4221316.0011.30
ADN1ADESSO AG O.N.21857.1967.0047.15
A1OSALL FOR ONE STEEB AG5460.7072.0047.60
AOFATOSS SOFTWARE AG3682.9894.2074.00

As you can see in the above table, FABASOFT AG (FAA) can be ranked third on volume scale.

5 How Annual Volumes Are Affecting FAA 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 (%)
200022.71065200
20010.72-96.83798823
20020.55-97.583124-52
20030.76-96.655279-19
20041.30-94.28721011
20052.23-90.181137875
20061.60-92.95736613
20071.23-94.582371-64
20080.78-96.571269-81
20090.21-99.08240-96
20101.03-95.46984-85
20110.98-95.682198-66
20121.12-95.073249-50
20131.33-94.146222-5
20142.79-87.712951-55
20153.41-84.981247-81
20164.86-78.6739-89
20179.85-56.631072-84
201813.33-41.3498-92
201912.67-44.21252-96

The correlation coefficient between the volume and price is -0.11. 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
Weekly0.44week positive
Monthly0.81strong positive
Yearly-0.11week 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 FAA 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. FAA 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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