Relationship between % institutional holding and volatility

[ritrading]

I recently found out that guru focus has charts which show you the % of outstanding shares held by institutions over time. I'm trying to figure out a way to utilize this data, and I'm wondering if anyone else has had ideas.

 

I'm hypothesizing that % institutional holding should not have a correlation to the future direction of the stock price.

 

I do have a hypothesis that % institutional holding should have some correlation to the volatility of the future the stock price. Example - A smaller number of available shares should make the stock price more susceptible to a large order.

 

I have another hypothesis (related to above) that a low % institutional holding in an undervalued company should have more room for upside (higher volatility).

 

Anyone have experience in testing out these ideas?

[KinAlberta]

It might be more useful in determining sectoral flows.

[ritrading]

It might be more useful in determining sectoral flows.

 

That's a pretty good idea. Know of any sites that aggregate such data? Otherwise, I have to scrape the data and do it myself.