MPWR +16.47% vs NVDA +26.79%: Swing Trading Strategies in Hi-tech & Volatility Balance, Correlation Analysis
In this article, we'll take a closer look at two titans in the semiconductor industry: Monolithic Power Systems (MPWR) and Nvidia Corporation (NVDA). Both companies have experienced impressive growth, but when compared side by side, some interesting contrasts emerge.
MPWR follows a Swing Trader strategy, focusing on the hi-tech and consumer sectors. This diversified approach has seen it attain a commendable yield of 16.47%. Conversely, NVDA adopts a Swing Trader strategy as well, though it leans on a Volatility Balanced Strategy based on technical analysis (TA). This method has yielded an impressive return of 26.79%.
The distinction between the two strategies becomes more apparent upon closer inspection. MPWR's focus on hi-tech and consumer sectors sees it pursue growth through diversified exposure in these markets. NVDA, however, utilizes a volatility-balanced approach, actively responding to market fluctuations with a detailed technical analysis lens. These two contrasting methods highlight the dynamic nature of Swing Trading, showcasing the breadth of tactics traders can employ to meet their investment goals.
It's worth noting that MPWR and NVDA are closely correlated, with a correlation coefficient of 81%. This means the two stocks often move in the same direction, reflecting their shared industry and the similarities in their market responses.
In terms of price growth, MPWR and NVDA have both shown remarkable resilience. Over the past week, MPWR's price grew by 2.25%, while NVDA's rose by 4.71%. Compared to the average weekly growth of 0.41% across all stocks in the semiconductor industry, both companies have significantly outpaced their peers. Moreover, these companies' price growth over this week is consistent with the average monthly (15.59%) and quarterly (16.19%) industry-wide growth.
Looking forward, both MPWR and NVDA are preparing to report their earnings in August 2023. MPWR is set to go first on August 1, 2023, followed by NVDA on August 17, 2023. Given their recent price growth and strong industry performance, these upcoming announcements will be critical in providing further insights into the companies' respective strategies and growth prospects.
Summary: MPWR and NVDA, despite employing different swing trading strategies, have shown compelling growth within the semiconductor industry. Their close correlation and shared market, coupled with their unique trading approaches, offer investors a fascinating comparison and a dynamic glimpse into the semiconductor market's future.
Momentum Indicator for MPWR turns negative, indicating new downward trend
MPWR saw its Momentum Indicator move below the 0 level on September 11, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned negative. In of the 94 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for MPWR turned negative on September 11, 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 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MPWR 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 MPWR entered a downward trend on September 06, 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 points to a transition from a downward trend to an upward trend -- in cases where MPWR's RSI Indicator exited the oversold zone, of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 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 MPWR advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
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 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 fairly steady price growth. MPWR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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: P/B Ratio (11.779) is normal, around the industry mean (7.944). P/E Ratio (48.544) is within average values for comparable stocks, (53.779). Projected Growth (PEG Ratio) (1.807) is also within normal values, averaging (2.342). Dividend Yield (0.008) settles around the average of (0.022) among similar stocks. P/S Ratio (11.919) is also within normal values, averaging (72.586).
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 developer of proprietary, advanced analog and mixed-signal semiconductors
Industry Semiconductors
MPWR and
Correlation & Price change
A.I.dvisor indicates that over the last year, MPWR has been closely correlated with NXPI. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if MPWR jumps, then NXPI could also see price increases.
| Ticker / NAME | Correlation To MPWR | 1D Price Change % | ||
|---|---|---|---|---|
| MPWR | 100% | -1.90% | ||
| NXPI - MPWR | 82% Closely correlated | -1.58% | ||
| AMAT - MPWR | 78% Closely correlated | -1.84% | ||
| LSCC - MPWR | 78% Closely correlated | -1.44% | ||
| MCHP - MPWR | 78% Closely correlated | -1.78% | ||
| TER - MPWR | 78% Closely correlated | -0.63% | ||
More | ||||