SIEMENS HEALTHINEERS AG (SHL) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

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

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

1 How SIEMENS HEALTHINEERS AG (SHL) 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.

SIEMENS HEALTHINEERS AG (SHL) 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 (%)
134.56048160
534.06-1.453002-38
1333.96-1.74852491670
1732.33-6.4520225320
2132.93-4.7213706185
2534.760.5825501430
2938.019.9810587120
3337.137.443396-29
3737.077.263741-22
4134.49-0.2669739
4537.448.33578620
4937.348.043385-30

Now we are going to see if there is a relationship between weekly average volumes of SIEMENS HEALTHINEERS AG (SHL) 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 SHL 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

SIEMENS HEALTHINEERS AG (SHL) 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 SHL shares.

Correlation Coefficient Between SHL weekly volumes and prices = -0.43

Interpretation:

-0.43 indicates a week negative correlation, If volume decreases price increases but not always.

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

DateVolumeOpen (€)Close (€)(Close - Open) (€)Profit/LossGain (%)
2018-03-16119175429.130.6951.59Profit5.48
2018-03-1955925231.531.13-0.37Loss-1.17
2018-03-2025354031.38532.7851.40Profit4.46
2018-03-2119447232.532.5250.03Profit0.08
2018-03-2214191332.6932.19-0.50Loss-1.53
2018-04-0510598535.734.85-0.85Loss-2.38
2018-03-239900331.7531.840.09Profit0.28
2018-04-039407233.434.561.16Profit3.47
2018-04-048465534.635.2850.69Profit1.98
2018-03-277943332.0532.8250.78Profit2.42
2018-04-097453834.24532.645-1.60Loss-4.67
2018-03-267452132.0531.73-0.32Loss-1.00
2018-03-297257832.64533.3850.74Profit2.27
2018-04-10704183333.4350.44Profit1.32
2018-04-245759732.2431.145-1.10Loss-3.40
2018-04-065628534.6533.9-0.75Loss-2.16
2018-03-284432932.4932.590.10Profit0.31
2018-06-254301336.9535.34-1.61Loss-4.36
2018-04-163407932.732.750.05Profit0.15
2018-05-253323833.76533.45-0.31Loss-0.93
2018-06-06324313535.50.50Profit1.43
2018-04-133163032.69532.6-0.10Loss-0.29
2018-04-113117433.2932.71-0.58Loss-1.74
2018-04-123088932.94532.475-0.47Loss-1.43
2018-06-263070635.5535.3-0.25Loss-0.70
2018-10-083004135.8534.665-1.18Loss-3.31
2018-07-303002737.4138.2650.85Profit2.29
2018-05-182970033.7433.9350.19Profit0.58
2018-06-072924935.7435.055-0.69Loss-1.92
2018-10-102876734.532.805-1.69Loss-4.91

3 How SIEMENS HEALTHINEERS AG (SHL) 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 (%)
2019-233.78033230
2019-134.632.52365210
2018-1236.829423027
2018-1136.869.12448935
2018-1034.512.169778194
2018-937.4310.81395319
2018-837.5211.07608583
2018-736.919.2713401303
2018-634.903.3223073594
2018-532.86-2.7218837467
2018-432.27-4.47437861218
2018-331.53-6.662710808058

The correlation between the monthly volume and price turns out to be -0.6. Therefore we have a strong negative correlation, Meaning - If volume decreases price increases almost always.

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

TickerStock NameVolumesAvg. Price (€)Highest Price (€)Lowest Price (€)
SHLSIEMENS HEALTHINEERS AG 245603538.9630.09
AGXAGENNIX AG I.A.116400.060.140.02
B8FBIOFRONTERA AG58585.777.224.80
AAQAAP IMPLANTATE AG25591.662.170.93
BBZABB BIOTECH NAM. SF 1172458.0765.9749.30
AFXCARL ZEISS MEDITEC AG67763.9981.9548.19

As you can see in the above table, SIEMENS HEALTHINEERS AG (SHL) can be ranked first on volume scale.

5 How Annual Volumes Are Affecting SHL 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 (%)
20084.14017980
20091.26-69.57276954
20105.2426.578904395
20114.12-0.48231829
20121.13-72.711643939043
20130.07-98.31949015178
20140.05-98.79408642173
20150.01-99.76358851896
20160.00-1000-100
20170.00-1000-100
201827.65567.87212781083
201934.52733.823612101

The correlation coefficient between the volume and price is -0.23. 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-0.43week negative
Monthly-0.6strong negative
Yearly-0.23week 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 SHL 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. SHL 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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