Ligand Pharmaceuticals General Stock Volatility
| LGNYZ Stock | USD 0.01 0.00 0.00% |
Ligand Pharmaceuticals is out of control given 3 months investment horizon. Ligand Pharmaceuticals has Sharpe Ratio of 0.27, which conveys that the firm had a 0.27% return per unit of risk over the last 3 months. We have analyzed and interpolated twenty-four different technical indicators, which can help you to evaluate if expected returns of 27.91% are justified by taking the suggested risk. Use Ligand Pharmaceuticals Downside Deviation of 37.02, risk adjusted performance of 0.1122, and Mean Deviation of 30.97 to evaluate company specific risk that cannot be diversified away. Key indicators related to Ligand Pharmaceuticals' volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Ligand Pharmaceuticals Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Ligand daily returns, and it is calculated using variance and standard deviation. We also use Ligand's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ligand Pharmaceuticals volatility.
Ligand |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ligand Pharmaceuticals can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Ligand Pharmaceuticals at lower prices. For example, an investor can purchase Ligand stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Ligand Pharmaceuticals' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Ligand Pharmaceuticals Market Sensitivity And Downside Risk
Ligand Pharmaceuticals' beta coefficient measures the volatility of Ligand pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Ligand pink sheet's returns against your selected market. In other words, Ligand Pharmaceuticals's beta of -26.9 provides an investor with an approximation of how much risk Ligand Pharmaceuticals pink sheet can potentially add to one of your existing portfolios. Ligand Pharmaceuticals General is showing large volatility of returns over the selected time horizon. Ligand Pharmaceuticals General is a penny stock. Even though Ligand Pharmaceuticals may be a good instrument to invest, many penny pink sheets are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in Ligand Pharmaceuticals General or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Ligand instrument if you perfectly time your entry and exit. However, remember that penny pink sheets that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Ligand Pharmaceuticals Demand TrendCheck current 90 days Ligand Pharmaceuticals correlation with market (NYSE Composite)Ligand Beta |
Ligand standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 103.88 |
It is essential to understand the difference between upside risk (as represented by Ligand Pharmaceuticals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ligand Pharmaceuticals' daily returns or price. Since the actual investment returns on holding a position in ligand pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Ligand Pharmaceuticals.
Ligand Pharmaceuticals Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Ligand Pharmaceuticals pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ligand Pharmaceuticals' price changes. Investors will then calculate the volatility of Ligand Pharmaceuticals' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Ligand Pharmaceuticals' volatility:
Historical Volatility
This type of pink sheet volatility measures Ligand Pharmaceuticals' fluctuations based on previous trends. It's commonly used to predict Ligand Pharmaceuticals' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Ligand Pharmaceuticals' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Ligand Pharmaceuticals' to be redeemed at a future date.Transformation |
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Ligand Pharmaceuticals Projected Return Density Against Market
Assuming the 90 days horizon Ligand Pharmaceuticals General has a beta of -26.8975 . This indicates as returns on its benchmark rise, returns on holding Ligand Pharmaceuticals General are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Ligand Pharmaceuticals is expected to outperform its benchmark.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ligand Pharmaceuticals or Other sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ligand Pharmaceuticals' price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ligand pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Ligand Pharmaceuticals General has an alpha of 10.9318, implying that it can generate a 10.93 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ligand Pharmaceuticals Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Ligand Pharmaceuticals Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Ligand Pharmaceuticals is 372.15. The daily returns are distributed with a variance of 10790.98 and standard deviation of 103.88. The mean deviation of Ligand Pharmaceuticals General is currently at 64.53. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 10.93 | |
β | Beta against NYSE Composite | -26.9 | |
σ | Overall volatility | 103.88 | |
Ir | Information ratio | 0.16 |
Ligand Pharmaceuticals Pink Sheet Return Volatility
Ligand Pharmaceuticals historical daily return volatility represents how much of Ligand Pharmaceuticals pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 103.8796% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6321% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ligand Pharmaceuticals Volatility
Volatility is a rate at which the price of Ligand Pharmaceuticals or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Ligand Pharmaceuticals may increase or decrease. In other words, similar to Ligand's beta indicator, it measures the risk of Ligand Pharmaceuticals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ligand Pharmaceuticals fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Ligand Pharmaceuticals' volatility to invest better
Higher Ligand Pharmaceuticals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ligand Pharmaceuticals stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Ligand Pharmaceuticals stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Ligand Pharmaceuticals investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ligand Pharmaceuticals' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Ligand Pharmaceuticals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ligand Pharmaceuticals Investment Opportunity
Ligand Pharmaceuticals General has a volatility of 103.88 and is 164.89 times more volatile than NYSE Composite. 96 percent of all equities and portfolios are less risky than Ligand Pharmaceuticals. You can use Ligand Pharmaceuticals General to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Ligand Pharmaceuticals to be traded at $0.005 in 90 days.Very good diversification
The correlation between Ligand Pharmaceuticals General and NYA is -0.32 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ligand Pharmaceuticals General and NYA in the same portfolio, assuming nothing else is changed.
Ligand Pharmaceuticals Additional Risk Indicators
The analysis of Ligand Pharmaceuticals' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Ligand Pharmaceuticals' investment and either accepting that risk or mitigating it. Along with some common measures of Ligand Pharmaceuticals pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1122 | |||
| Market Risk Adjusted Performance | (0.31) | |||
| Mean Deviation | 30.97 | |||
| Semi Deviation | 25.43 | |||
| Downside Deviation | 37.02 | |||
| Coefficient Of Variation | 609.54 | |||
| Standard Deviation | 52.71 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Ligand Pharmaceuticals Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Ligand Pharmaceuticals as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Ligand Pharmaceuticals' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Ligand Pharmaceuticals' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Ligand Pharmaceuticals General.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Complementary Tools for Ligand Pink Sheet analysis
When running Ligand Pharmaceuticals' price analysis, check to measure Ligand Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ligand Pharmaceuticals is operating at the current time. Most of Ligand Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Ligand Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ligand Pharmaceuticals' price. Additionally, you may evaluate how the addition of Ligand Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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