ADI (+7.75%) vs NVDA(+26.79%) Swing Trading: Tech & Volatility Strategies Comparison
In the ever-changing landscape of the financial markets, the juxtaposition of different stocks and trading strategies can provide significant insights. We are focusing on two stocks, Analog Devices Inc. (ADI) and NVIDIA Corporation (NVDA), which interestingly share a strong correlation of 85%.
From a strategic standpoint, ADI aligns with a Swing Trader approach that invests in a diversified portfolio consisting of Hi-tech, Consumer, and Financial sectors. With a return of 7.75%, it shows a level of stability brought by this diversification. In contrast, NVDA aligns with a Swing Trader strategy that is volatility balanced. This approach focuses on technical analysis and effectively capitalizes on market volatility, as evidenced by an impressive return of 26.79%.
There's an intriguing dichotomy when comparing the Swing Trader Hi-tech strategy and the Swing trader Volatility Balanced Strategy. The former focuses on a longer-term horizon exploiting sector-specific trends, while the latter relies heavily on short-term price fluctuations, trading on volatility and technical indicators.
Moving on to price growth, both ADI and NVDA operate in the Semiconductors industry, which is experiencing a promising trend with average quarterly price growth of 16.55%. The weekly snapshot shows that ADI had a price change of +2.34%, outperforming NVDA, which had a price change of +0.98%, and also surpassing the industry's average weekly price growth of +0.71%. However, an in-depth analysis is required to ascertain whether this difference in price change reflects a longer-term trend or is a result of market anomalies.
A crucial factor that influences the trajectory of a stock's price is its earnings report. For the present fiscal year, ADI is set to report its earnings on August 23, 2023, while NVDA is due earlier on August 17, 2023. These dates could significantly impact stock prices, providing potential investment opportunities for discerning traders.
Summary: while both ADI and NVDA demonstrate compelling potential, the choice between the two will largely depend on an investor's risk tolerance and investment horizon. Given the nature of the Swing Trader Hi-tech strategy, ADI may be more suited for investors seeking a diversified portfolio with relatively lower volatility. Meanwhile, the Swing Trader Volatility Balanced Strategy employed by NVDA might be more attractive to those who can tolerate higher volatility and are keen to exploit short-term price fluctuations.
NVDA in downward trend: price may decline as a result of having broken its higher Bollinger Band on August 21, 2023
NVDA broke above its upper Bollinger Band on August 21, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 55 similar instances where the stock broke above the upper band. In of the 55 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NVDA turned negative on September 07, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
NVDA moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NVDA crossed bearishly below the 50-day moving average on September 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NVDA entered a downward trend on August 21, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for NVDA's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (37.879) is slightly higher than the industry average of (7.984). P/E Ratio (102.041) is within average values for comparable stocks, (53.953). Projected Growth (PEG Ratio) (1.338) is also within normal values, averaging (2.360). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (32.154) is also within normal values, averaging (72.684).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of computer graphics processors, chipsets, and related multimedia software
Industry Semiconductors
NVDA and
Correlation & Price change
A.I.dvisor indicates that over the last year, NVDA has been closely correlated with AMD. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if NVDA jumps, then AMD could also see price increases.
| Ticker / NAME | Correlation To NVDA | 1D Price Change % | ||
|---|---|---|---|---|
| NVDA | 100% | -2.89% | ||
| AMD - NVDA | 82% Closely correlated | -4.25% | ||
| AOSL - NVDA | 78% Closely correlated | N/A | ||
| ASML - NVDA | 77% Closely correlated | -1.32% | ||
| MPWR - NVDA | 75% Closely correlated | -2.78% | ||
| MRVL - NVDA | 73% Closely correlated | -2.08% | ||
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