Legend Biotech Stock Forecast - Naive Prediction

LEGN Stock  USD 50.00  0.26  0.52%   
The Naive Prediction forecasted value of Legend Biotech Corp on the next trading day is expected to be 51.63 with a mean absolute deviation of 1.21 and the sum of the absolute errors of 73.70. Legend Stock Forecast is based on your current time horizon. Although Legend Biotech's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Legend Biotech's systematic risk associated with finding meaningful patterns of Legend Biotech fundamentals over time.
  
As of the 13th of October 2024, Fixed Asset Turnover is likely to grow to 2.16, while Inventory Turnover is likely to drop 8.05. . As of the 13th of October 2024, Common Stock Shares Outstanding is likely to drop to about 150.6 M. In addition to that, Net Loss is likely to grow to about (381.6 M).
Most investors in Legend Biotech cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the Legend Biotech's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Legend Biotech's price structures and extracts relationships that further increase the accuracy of the generated results.
 
Cash  
First Reported
2010-12-31
Previous Quarter
1.3 B
Current Value
1.3 B
Quarterly Volatility
478.9 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
A naive forecasting model for Legend Biotech is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Legend Biotech Corp value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

Legend Biotech Naive Prediction Price Forecast For the 14th of October 2024

Given 90 days horizon, the Naive Prediction forecasted value of Legend Biotech Corp on the next trading day is expected to be 51.63 with a mean absolute deviation of 1.21, mean absolute percentage error of 2.47, and the sum of the absolute errors of 73.70.
Please note that although there have been many attempts to predict Legend Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Legend Biotech's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Legend Biotech Stock Forecast Pattern

Backtest Legend BiotechLegend Biotech Price PredictionBuy or Sell Advice 

Legend Biotech Forecasted Value

In the context of forecasting Legend Biotech's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Legend Biotech's downside and upside margins for the forecasting period are 48.75 and 54.51, respectively. We have considered Legend Biotech's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
50.00
51.63
Expected Value
54.51
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Legend Biotech stock data series using in forecasting. Note that when a statistical model is used to represent Legend Biotech stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria119.0161
BiasArithmetic mean of the errors None
MADMean absolute deviation1.2082
MAPEMean absolute percentage error0.0231
SAESum of the absolute errors73.6997
This model is not at all useful as a medium-long range forecasting tool of Legend Biotech Corp. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict Legend Biotech. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for Legend Biotech

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Legend Biotech Corp. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Legend Biotech's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
47.0649.9452.82
Details
Intrinsic
Valuation
LowRealHigh
45.0057.7760.65
Details
Bollinger
Band Projection (param)
LowMiddleHigh
43.3050.8658.43
Details
21 Analysts
Consensus
LowTargetHigh
80.4188.3698.08
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Legend Biotech. Your research has to be compared to or analyzed against Legend Biotech's peers to derive any actionable benefits. When done correctly, Legend Biotech's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Legend Biotech Corp.

Other Forecasting Options for Legend Biotech

For every potential investor in Legend, whether a beginner or expert, Legend Biotech's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Legend Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Legend. Basic forecasting techniques help filter out the noise by identifying Legend Biotech's price trends.

View Legend Biotech Related Equities

 Risk & Return  Correlation

Legend Biotech Corp Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Legend Biotech's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Legend Biotech's current price.

Legend Biotech Market Strength Events

Market strength indicators help investors to evaluate how Legend Biotech stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Legend Biotech shares will generate the highest return on investment. By undertsting and applying Legend Biotech stock market strength indicators, traders can identify Legend Biotech Corp entry and exit signals to maximize returns.

Legend Biotech Risk Indicators

The analysis of Legend Biotech's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Legend Biotech's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting legend stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Pair Trading with Legend Biotech

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Legend Biotech position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Legend Biotech will appreciate offsetting losses from the drop in the long position's value.

Moving together with Legend Stock

  0.79VALN Valneva SE ADRPairCorr

Moving against Legend Stock

  0.75DNLI Denali TherapeuticsPairCorr
  0.73VERA Vera TherapeuticsPairCorr
  0.66DMAC DiaMedica TherapeuticsPairCorr
  0.6DOMH Dominari HoldingsPairCorr
  0.58DRTS Alpha Tau MedicalPairCorr
The ability to find closely correlated positions to Legend Biotech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Legend Biotech when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Legend Biotech - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Legend Biotech Corp to buy it.
The correlation of Legend Biotech is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Legend Biotech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Legend Biotech Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Legend Biotech can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Legend Biotech Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Legend Biotech's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Legend Biotech Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Legend Biotech Corp Stock:
Check out Historical Fundamental Analysis of Legend Biotech to cross-verify your projections.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Legend Biotech. If investors know Legend will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Legend Biotech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.54)
Revenue Per Share
2.505
Quarterly Revenue Growth
1.544
Return On Assets
(0.13)
Return On Equity
(0.22)
The market value of Legend Biotech Corp is measured differently than its book value, which is the value of Legend that is recorded on the company's balance sheet. Investors also form their own opinion of Legend Biotech's value that differs from its market value or its book value, called intrinsic value, which is Legend Biotech's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Legend Biotech's market value can be influenced by many factors that don't directly affect Legend Biotech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Legend Biotech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Legend Biotech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Legend Biotech's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.