KHD HUMBOLDT WEDAG ON (KWG) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

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

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

1 How KHD HUMBOLDT WEDAG ON (KWG) 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.

KHD HUMBOLDT WEDAG ON (KWG) 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 (%)
11.32018800
62.4081.82243429
112.2872.731000-47
162.4081.82851-55
222.70104.55581-69
262.4787.125500193
322.5089.391200-36
402.3376.52290054
461.8943.181346-28

Now we are going to see if there is a relationship between weekly average volumes of KHD HUMBOLDT WEDAG ON (KWG) 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 KWG 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

KHD HUMBOLDT WEDAG ON (KWG) 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 KWG shares.

Correlation Coefficient Between KWG weekly volumes and prices = -0.24

Interpretation:

-0.24 indicates a week negative correlation, If volume decreases price increases but not always.

2 Did 30 Highest Volume Days Of KWG 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 KHD HUMBOLDT WEDAG ON (KWG) resulted in profits. Below table gives you the data.

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-12-20414701.371.265-0.11Loss-7.66
2018-12-17172741.561.53-0.03Loss-1.92
2018-02-06120002.162.210.05Profit2.31
2018-10-16118942.342.25-0.09Loss-3.85
2018-05-11100002.612.56-0.05Loss-1.92
2018-02-19100002.452.490.04Profit1.63
2018-12-2199091.2151.220.00Profit0.41
2018-02-2385612.432.480.05Profit2.06
2018-03-1283002.232.40.17Profit7.62
2018-02-0582332.452.33-0.12Loss-4.90
2018-08-2381722.632.720.09Profit3.42
2018-06-2873002.52.570.07Profit2.80
2018-12-2768041.1951.240.04Profit3.77
2018-12-1258491.691.555-0.14Loss-7.99
2018-08-2058002.582.750.17Profit6.59
2018-07-0255002.452.470.02Profit0.82
2018-02-0950002.282.26-0.02Loss-0.88
2018-06-1843002.632.6-0.03Loss-1.14
2018-12-2840001.231.175-0.06Loss-4.47
2018-09-0340002.612.610.00Profit0.00
2018-12-1437161.61.60.00Profit0.00
2018-05-1536812.492.540.05Profit2.01
2018-06-2136002.522.550.03Profit1.19
2018-02-1235002.242.40.16Profit7.14
2018-10-2334802.142.160.02Profit0.93
2018-11-1631702.062.04-0.02Loss-0.97
2018-08-0830002.342.470.13Profit5.56
2018-10-1129002.42.33-0.07Loss-2.92
2018-11-2221911.7851.8550.07Profit3.92
2018-02-1520452.442.41-0.03Loss-1.23

3 How KHD HUMBOLDT WEDAG ON (KWG) 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 (%)
2019-11.40013870
2018-121.40010057625
2018-111.9438.57195441
2018-102.2963.574254207
2018-92.52802850105
2018-82.5481.432778100
2018-72.5179.292950113
2018-62.6186.43235770
2018-52.59852981115
2018-42.3366.431152-17
2018-32.3366.43267593
2018-22.3769.295711312

The correlation between the monthly volume and price turns out to be -0.38. Therefore we have a week negative correlation, Meaning - If volume decreases price increases but not always.

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

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
HEIHEIDELBERGCEMENT AG O.N.142269.2081.3052.72
KWGKHD HUMBOLDT WEDAG ON 104822.841.17
B5ABAUER AG78318.3427.3012.10
FROFROEHLICH BAU AG I.A.1390.090.140.04
HOTHOCHTIEF AG77139.55160.00113.00
FRO3FROEHLICH BAU AG VZO I.A.620.040.150.00

As you can see in the above table, KHD HUMBOLDT WEDAG ON (KWG) can be ranked secon on volume scale.

5 How Annual Volumes Are Affecting KWG 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 (%)
200011.310220
20016.25-44.74149577
20021.00-91.1612975795
20030.74-93.465042191
20040.50-95.588083573
20052.09-81.52428419373
20063.63-67.913576068
20074.34-61.6310624727
20084.41-61.015362336
20090.46-95.936-73
20104.60-59.3310444645
20114.55-59.77305513786
20124.88-56.85249111223
20134.95-56.2319018541
20145.22-53.855402355
20153.14-72.246202718
20161.86-83.5520339141
20171.72-84.79300613564
20182.35-79.2212275477
20191.47-872771159

The correlation coefficient between the volume and price is -0.17. 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
Weekly-0.24week negative
Monthly-0.38week negative
Yearly-0.17week 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 KWG 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. KWG 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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