KAIFA (000021) Stock Volume - Impact On Prices

| February 7, 2019More Stocks

This report analyzes the impact of recent 52-week volume of KAIFA (000021) 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 KAIFA (000021) Weekly Volumes Are Affecting Price
  2. Did 30 Highest Volume Days Of 000021 Closed In Profits?
  3. How KAIFA (000021) Monthly Volumes Are Affecting Price
  4. Volume Of 000021 Vs Similar Stocks
  5. How Annual Volumes Are Affecting 000021 Price

Note: Do you want to know the best performing days, months and weeks of 000021 recently. We recommend you to read the 52-week highs/lows report for 000021.

1 How KAIFA (000021) 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.

KAIFA (000021) 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 (%)
16.09094807100
57.9029.7220124078112
98.8645.4824985894164
138.6742.3627622393191
178.8845.8130259549219
217.9931.297821183
256.598.219302378-2
297.0515.7699514415
336.333.946017242-37
376.0907361649-22
425.22-14.296753874-29
466.171.311156267822
505.95-2.37050610-26

Now we are going to see if there is a relationship between weekly average volumes of KAIFA (000021) 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 000021 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

KAIFA (000021) 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 000021 shares.

Correlation Coefficient Between 000021 weekly volumes and prices = 0.77

Interpretation:

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

2 Did 30 Highest Volume Days Of 000021 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 KAIFA (000021) resulted in profits. Below table gives you the data.

DateVolumeOpen (¥)Close (¥)(Close - Open) (¥)Profit/LossGain (%)
2018-04-191133906789.699.54-0.15Loss-1.55
2018-04-20800307429.419.670.26Profit2.76
2018-04-25651895039.529.730.21Profit2.21
2018-04-23598194749.659.25-0.40Loss-4.15
2018-04-18505140048.639.410.78Profit9.04
2018-04-24479715859.269.650.39Profit4.21
2018-04-26445598029.69.59-0.01Loss-0.10
2018-02-01445560088.938.28-0.65Loss-7.28
2018-05-02436598909.128.87-0.25Loss-2.74
2018-04-27388703659.79.34-0.36Loss-3.71
2018-04-02370902148.88.940.14Profit1.59
2018-03-23361392458.668.02-0.64Loss-7.39
2018-01-30356563859.649.29-0.35Loss-3.63
2018-03-01340519388.588.950.37Profit4.31
2018-01-31332943219.318.93-0.38Loss-4.08
2018-03-09317630678.849.090.25Profit2.83
2018-03-12315840329.159.12-0.03Loss-0.33
2018-01-29305784829.89.65-0.15Loss-1.53
2018-03-02303501188.828.75-0.07Loss-0.79
2018-02-06287848058.037.74-0.29Loss-3.61
2018-03-13279817319.099.06-0.03Loss-0.33
2018-02-02276163828.148.380.24Profit2.95
2018-05-03274894048.839.030.20Profit2.27
2018-02-28272114008.428.690.27Profit3.21
2018-03-06271538768.948.960.02Profit0.22
2018-04-17270225788.938.55-0.38Loss-4.26
2018-02-27263604148.528.560.04Profit0.47
2018-03-21253208428.748.780.04Profit0.46
2018-04-03250361988.788.780.00Profit0.00
2018-05-10246461498.98.84-0.06Loss-0.67

3 How KAIFA (000021) 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 (%)
2019-16.06077408400
2018-126.03-0.57698130-1
2018-115.99-1.161065105338
2018-105.28-12.876494258-16
2018-96.090.55420469-30
2018-86.415.786482145-16
2018-76.8713.37937822421
2018-67.2519.64938331421
2018-58.5140.4317477022126
2018-48.9948.3540361198421
2018-38.6843.2322923323196
2018-28.1434.3221405714177
2018-19.2252.1533176396329

The correlation between the monthly volume and price turns out to be 0.88. Therefore we have a strong positive correlation, Meaning - If volume increases price increases almost always.

4 Volume Of 000021 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 000021 compared to 5 similar stocks in recent 52 weeks.

TickerStock NameVolumesAvg. Price (¥)Highest Price (¥)Lowest Price (¥)
000830LUXI CHEMICAL4675687815.7324.529.72
002176JIANGTE MOTOR303635128.7012.805.00
000557WESTERN VENTURE142914643.925.103.11
000021KAIFA 1372118579.664.91
000568LUZHOU LAO JIAO1003544851.3968.5535.60
000938UNIS619348842.5857.5231.13

As you can see in the above table, KAIFA (000021) can be ranked fourth on volume scale.

5 How Annual Volumes Are Affecting 000021 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 (%)
20007.83055269000
20014.82-38.441156274-79
20023.72-52.493566311-35
20033.96-49.4355337990
20043.77-51.854361144-21
20052.69-65.644091696-26
20064.01-48.79680366923
20078.609.8319349729250
20085.28-32.57762019038
20096.14-21.5820985588280
201010.3932.6922326950304
20118.042.68738652734
20125.12-34.615373665-3
20134.99-36.2712115988119
20146.15-21.4618065620227
201511.2743.9343937146695
20169.5822.3525122835355
20179.0014.9412815116132
20187.36-617853533223
20196.06-22.61774084040

The correlation coefficient between the volume and price is 0.78. This is a strong positive correlation, Meaning - If volume increases price increases almost always.

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

Volume Averaged OverCoefficientMeaning
Weekly0.77strong positive
Monthly0.88strong positive
Yearly0.78strong 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 000021 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. 000021 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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