SCHWEIZER ELECTR NA ON (SCE) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

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

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

1 How SCHWEIZER ELECTR NA ON (SCE) 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.

SCHWEIZER ELECTR NA ON (SCE) 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 (%)
115.0106220
519.6731.052517305
919.0426.8558-91
1319.1627.6573-88
1719.6330.78175-72
2119.0827.12131-79
2618.5023.25263-58
3018.7524.92175-72
3418.1821.122122241
3917.5016.59200-68
4314.70-2.0775-88
4913.60-9.39250-60

Now we are going to see if there is a relationship between weekly average volumes of SCHWEIZER ELECTR NA ON (SCE) 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 SCE 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

SCHWEIZER ELECTR NA ON (SCE) 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 SCE shares.

Correlation Coefficient Between SCE weekly volumes and prices = 0.11

Interpretation:

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

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2 Did 30 Highest Volume Days Of SCE 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 SCHWEIZER ELECTR NA ON (SCE) resulted in profits. Below table gives you the data.

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-02-06631520.519.4-1.10Loss-5.37
2018-08-31502918.0517.95-0.10Loss-0.55
2018-08-29498418.318.2-0.10Loss-0.55
2018-09-18302017.4517.2-0.25Loss-1.43
2018-02-05285420.920.90.00Profit0.00
2018-06-25285418.918.90.00Profit0.00
2018-05-17266119.3519.2-0.15Loss-0.78
2018-09-19256317.117.10.00Profit0.00
2018-05-25196418.919.150.25Profit1.32
2018-06-06184118.918.90.00Profit0.00
2018-05-24146519190.00Profit0.00
2019-01-14140016.816.15-0.65Loss-3.87
2018-04-20134019.5519.80.25Profit1.28
2018-05-23120919.119.20.10Profit0.52
2018-11-09115015.3515.40.05Profit0.33
2018-02-23110319.3519.40.05Profit0.26
2018-11-0699015.315.2-0.10Loss-0.65
2019-01-0890513.8514.750.90Profit6.50
2018-02-0780019.5519.70.15Profit0.77
2018-04-1780019.519.60.10Profit0.51
2019-01-0979316.115.25-0.85Loss-5.28
2018-11-1578014.9150.10Profit0.67
2018-05-0770019.720.10.40Profit2.03
2018-10-086641716.75-0.25Loss-1.47
2018-03-2260519.0519.40.35Profit1.84
2018-06-1860419.5519.4-0.15Loss-0.77
2018-04-0954719.4520.81.35Profit6.94
2018-07-3051018.618.90.30Profit1.61
2018-07-0550918.218.550.35Profit1.92
2018-06-1950019.119.150.05Profit0.26

3 How SCHWEIZER ELECTR NA ON (SCE) 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 (%)
2019-115.0903680
2018-1213.11-13.12246-33
2018-1115.05-0.2748532
2018-1015.915.43299-19
2018-917.4215.441184222
2018-818.4922.53844129
2018-718.5522.93246-33
2018-618.7524.2560564
2018-519.1126.6471394
2018-419.7030.55352-4
2018-319.0926.51260-29
2018-219.3828.431195225

The correlation between the monthly volume and price turns out to be 0.35. Therefore we have a week positive correlation, Meaning - If volume increases price increases but not always.

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

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
AIXAAIXTRON SE NA O.N.1709011.6419.227.87
DLGDIALOG SEMICOND. LS-,10523220.0426.9012.69
ADVADVA OPT.NETW.SE O.N.31496.498.155.00
DBDDIEBOLD NIXDORF DL 1,2521367.4414.352.21
SCESCHWEIZER ELECTR NA ON 2801720.5612.45
DAMDATA MODUL AG O.N.2766.6474.8854.20

As you can see in the above table, SCHWEIZER ELECTR NA ON (SCE) can be ranked fifth on volume scale.

5 How Annual Volumes Are Affecting SCE 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 (%)
200110.930220
20024.57-58.1990309
20035.24-52.0649123
20044.12-62.31228936
20054.64-57.5511425091
20065.43-50.32477721614
20076.02-44.9220839368
20084.35-60.25222273
20090.69-93.69210855
201014.9436.69409018491
201114.9736.965542418
201211.121.743861655
201313.0719.586292759
201419.5779.059134050
201519.9682.627833459
201617.6361.35452377
201720.4487.0110604718
201817.8963.683681573
201915.1438.52206836

The correlation coefficient between the volume and price is -0.02. 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
Weekly0.11week positive
Monthly0.35week positive
Yearly-0.02week 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 SCE 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. SCE 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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