CAU TECH (000004) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of CAU TECH (000004) 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 CAU TECH (000004) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of 000004 Closed In Profits?
  3. How CAU TECH (000004) Monthly Volumes Are Affecting Price
  4. Volume Of 000004 Vs Similar Stocks
  5. How Annual Volumes Are Affecting 000004 Price

Note: Do you want to know the best performing days, months and weeks of 000004 recently. We recommend you to read the 52-week highs/lows report for 000004.

1 How CAU TECH (000004) Weekly Volumes Are Affecting Price

First, let us see a graph representing the weekly prices and volumes for the recent 52 weeks between 2018-01-28 and 2019-01-28.

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.

CAU TECH (000004) 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 (%)
116.8403710480
519.9418.41870081134
921.0324.8853991946
1322.6434.4444986821
1720.4621.541643112
2122.7034.865403376
2519.0413.06313655-15
2918.499.84021638
3318.338.8542435514
3715.77-6.35756197104
4517.061.311116010201
4916.940.5968653785

Now we are going to see if there is a relationship between weekly average volumes of CAU TECH (000004) 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 000004 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

CAU TECH (000004) 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 000004 shares.

Correlation Coefficient Between 000004 weekly volumes and prices = 0.07

Interpretation:

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

ADVERTISEMENT

2 Did 30 Highest Volume Days Of 000004 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 CAU TECH (000004) resulted in profits. Below table gives you the data.

DateVolumeOpen (¥)Close (¥)(Close - Open) (¥)Profit/LossGain (%)
2018-08-08507109220.3620.2-0.16Loss-0.79
2018-08-09460743118.1818.850.67Profit3.69
2018-03-13271235621.6823.41.72Profit7.93
2018-10-29198706017.4915.49-2.00Loss-11.44
2018-08-06198589119.1719.880.71Profit3.70
2018-03-27190492822.8623.60.74Profit3.24
2018-03-14186008722.3822.34-0.04Loss-0.18
2018-11-0517325421616.310.31Profit1.94
2018-08-10172530918.3918.27-0.12Loss-0.65
2018-12-17163204117.617.56-0.04Loss-0.23
2018-08-07159290919.920.350.45Profit2.26
2018-08-16156962418.2818.580.30Profit1.64
2018-05-24145160022.2923.591.30Profit5.83
2018-11-13138190416.617.120.52Profit3.13
2018-12-14134011516.9418.261.32Profit7.79
2018-08-03131648218.519.160.66Profit3.57
2018-11-02125948715.515.760.26Profit1.68
2018-03-1512095382222.70.70Profit3.18
2018-02-06119580019.4419.80.36Profit1.85
2018-11-14117146417.217.17-0.03Loss-0.17
2018-11-07114472016.0616.120.06Profit0.37
2018-03-12114093421.0721.750.68Profit3.23
2018-02-07108940019.7919.90.11Profit0.56
2018-10-30106570015.4915.60.11Profit0.71
2018-05-21104931522.522.38-0.12Loss-0.53
2018-09-21103190015.8616.110.25Profit1.58
2018-11-15103040317.4317.09-0.34Loss-1.95
2018-11-16102946917.1617.350.19Profit1.11
2018-05-16102835521.5722.090.52Profit2.41
2018-02-0199040020.219.88-0.32Loss-1.58

3 How CAU TECH (000004) 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 2018-01-28 and 2019-01-28.

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 (%)
2019-116.5302366770
2018-1216.640.67504216113
2018-1116.630.6785935232
2018-1015.54-5.991230289420
2018-916.22-1.88526509122
2018-818.5612.281145876384
2018-718.6012.5239968469
2018-620.0921.5429372524
2018-521.9933.03565547139
2018-421.9832.9734624146
2018-322.2134.36887948275
2018-220.1421.84693925193
2018-120.9926.98604681155

The correlation between the monthly volume and price turns out to be -0.17. Therefore we have a week negative correlation, Meaning - If volume decreases price increases but not always.

4 Volume Of 000004 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 000004 compared to 5 similar stocks in recent 52 weeks.

TickerStock NameVolumesAvg. Price (¥)Highest Price (¥)Lowest Price (¥)
300700DIALINE218782843.4575.9222.51
002892KELI MOTOR207727530.7339.6725.80
300492CENDES173232825.9745.7319.02
300548BROADEX147530137.6349.3930.40
300550HEREN HEALTH91999639.0855.0225.96
000004CAU TECH 5638731923.6015.49

As you can see in the above table, CAU TECH (000004) can be ranked sixth on volume scale.

5 How Annual Volumes Are Affecting 000004 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 (%)
200017.66013274170
200120.4815.97328976-75
200215.24-13.7351505-74
20039.92-43.83298298-78
20047.10-59.81125137-15
20054.05-77.07693473-48
20063.69-79.111002528-24
20078.20-53.57219245965
20086.15-65.18878451-34
20095.87-66.7614240777
20109.57-45.811151603-13
201112.11-31.43207150056
20128.58-51.42210891159
201311.01-37.66224505569
201415.43-12.63254461092
201530.2971.524175171215
201637.10110.081223011-8
201730.1670.781319472-1
201819.289.17605121-54
201916.53-6.4236677-82

The correlation coefficient between the volume and price is 0.21. This is a week positive correlation, Meaning - If volume increases price increases but not always.

Summary of correlation coefficients of weekly, monthly and annual volumes against price.

Volume Averaged OverCoefficientMeaning
Weekly0.07week positive
Monthly-0.17week negative
Yearly0.21week positive

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 000004 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. 000004 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.

Volume Reports of Similar Stocks: