SHAHE INDUSTRY (000014) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of SHAHE INDUSTRY (000014) 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 SHAHE INDUSTRY (000014) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of 000014 Closed In Profits?
  3. How SHAHE INDUSTRY (000014) Monthly Volumes Are Affecting Price
  4. Volume Of 000014 Vs Similar Stocks
  5. How Annual Volumes Are Affecting 000014 Price

Note: Do you want to know the best performing days, months and weeks of 000014 recently. We recommend you to read the 52-week highs/lows report for 000014.

1 How SHAHE INDUSTRY (000014) 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.

SHAHE INDUSTRY (000014) 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 (%)
19.76047235950
59.770.13838102-19
911.2315.06707759550
1312.2125.115196585222
1711.7920.813195477179
2113.3436.6822674664380
2514.8652.2526330334457
2913.0133.311918758152
3310.8511.17610095029
3711.0012.713163874179
429.45-3.18790370667
469.972.15904800192
5010.012.56754799660

Now we are going to see if there is a relationship between weekly average volumes of SHAHE INDUSTRY (000014) 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 000014 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

SHAHE INDUSTRY (000014) 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 000014 shares.

Correlation Coefficient Between 000014 weekly volumes and prices = 0.83

Interpretation:

0.83 indicates a strong positive correlation, If volume increases price increases almost always

2 Did 30 Highest Volume Days Of 000014 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 SHAHE INDUSTRY (000014) resulted in profits. Below table gives you the data.

DateVolumeOpen (¥)Close (¥)(Close - Open) (¥)Profit/LossGain (%)
2018-05-10682662351517.112.11Profit14.07
2018-05-095998024216.715.55-1.15Loss-6.89
2018-05-115225841816.1915.4-0.79Loss-4.88
2018-05-254899182914.5215.741.22Profit8.40
2018-05-074795279813.714.230.53Profit3.87
2018-05-084194710813.915.651.75Profit12.59
2018-06-153457836213.8815.081.20Profit8.65
2018-05-173393317414.1214.370.25Profit1.77
2018-05-143387830614.5414.25-0.29Loss-1.99
2018-05-283282392715.214.63-0.57Loss-3.75
2018-06-213203210414.1914.730.54Profit3.81
2018-05-293155803513.9813.19-0.79Loss-5.65
2018-06-223118417514.4115.20.79Profit5.48
2018-06-273083609514.615.10.50Profit3.42
2018-05-152834730014.3514.410.06Profit0.42
2018-06-142832067313.4514.160.71Profit5.28
2018-05-162799696714.0114.10.09Profit0.64
2018-06-252780587215.5214.6-0.92Loss-5.93
2018-06-202767307813.414.481.08Profit8.06
2018-12-07269093451010.470.47Profit4.70
2018-03-302665513612.5512.3-0.25Loss-1.99
2018-06-192547113314.413.57-0.83Loss-5.76
2018-06-282543832614.915.110.21Profit1.41
2018-06-262410043413.4514.170.72Profit5.35
2018-06-292347094514.815.330.53Profit3.58
2018-06-112262918313.4313.820.39Profit2.90
2018-05-212224984814.1414.470.33Profit2.33
2018-04-022192023511.9212.660.74Profit6.21
2018-07-042164598713.8514.530.68Profit4.91
2019-01-23214800269.7210.030.31Profit3.19

3 How SHAHE INDUSTRY (000014) 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 (%)
2019-19.72057057320
2018-129.911.95910007459
2018-119.54-1.85718948926
2018-109.32-4.1258289532
2018-910.467.61696176022
2018-810.8611.73855710950
2018-713.1134.8812763552124
2018-614.0544.5522586140296
2018-514.1645.6830782309439
2018-411.2315.53691339721
2018-311.0613.79672675318
2018-210.305.974017430-30
2018-112.5028.65591299-2

The correlation between the monthly volume and price turns out to be 0.8. Therefore we have a strong positive correlation, Meaning - If volume increases price increases almost always.

4 Volume Of 000014 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 000014 compared to 5 similar stocks in recent 52 weeks.

TickerStock NameVolumesAvg. Price (¥)Highest Price (¥)Lowest Price (¥)
000014SHAHE INDUSTRY 108715391117.108.72
002112SANBIAN SCI-TECH76359268.4917.505.29
300223INGENIC558092121.8528.5616.92
002785WANLI STONE24778229.7413.117.38
002319LETONG SHARE113801315.4517.2612.72
002728TY PHAR.91276115.6619.1512.38

As you can see in the above table, SHAHE INDUSTRY (000014) can be ranked first on volume scale.

5 How Annual Volumes Are Affecting 000014 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 (%)
20003.78044447270
20014.8327.782755539-38
20024.2512.431235928-72
20032.90-23.281083633-76
20042.40-36.511656317-63
20051.95-48.412331561-48
20063.58-5.29569746228
200710.15168.52756603170
20088.67129.372068688-53
200913.70262.43497498512
201011.63207.67524612518
20117.70103.72429522-45
20127.4396.5611309241154
20139.61154.2310399928134
201411.50204.2345825223
201520.35438.369404803112
201619.57417.72529145019
201716.90347.092860054-36
201811.47203.4411392287156
20199.72157.14570573228

The correlation coefficient between the volume and price is 0.41. 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
Weekly0.83strong positive
Monthly0.8strong positive
Yearly0.41week 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 000014 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. 000014 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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