# Insmed Stock Volatility

INSM Stock | USD 26.17 0.17 0.65% |

Insmed appears to be very steady, given 3 months investment horizon. Insmed Inc holds Efficiency (Sharpe) Ratio of 0.17, which attests that the entity had 0.17% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Insmed Inc, which you can use to evaluate the future volatility of the firm. Please utilize Insmed's Risk Adjusted Performance of 0.0946, market risk adjusted performance of 2.01, and Downside Deviation of 1.53 to validate if our risk estimates are consistent with your expectations.

30 Days Market Risk | Chance of Distress | 30 Days Economic Sensitivity |

Insmed Stock 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 Insmed daily returns, and it is calculated using variance and standard deviation. We also use Insmed's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Insmed volatility.

Insmed |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Insmed 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 Insmed at lower prices. For example, an investor can purchase Insmed 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 Insmed's 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.

## Moving against Insmed Stock

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- | 0.79 | DTIL | Precision BioSciences | Fiscal Quarter End 30th of September 2023 | PairCorr | |

- | 0.78 | VCNX | Vaccinex | Fiscal Quarter End 30th of September 2023 | PairCorr | |

- | 0.77 | VERV | Verve Therapeutics | Fiscal Quarter End 30th of September 2023 | PairCorr | |

- | 0.77 | DRTS | Alpha Tau Medical | Fiscal Quarter End 30th of September 2023 | PairCorr | |

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- | 0.71 | YS | YS Biopharma | Fiscal Quarter End 30th of September 2023 | PairCorr | |

- | 0.71 | DRUG | Bright Minds Biosciences | Fiscal Quarter End 30th of September 2023 | PairCorr |

## Insmed Market Sensitivity And Downside Risk

Insmed's beta coefficient measures the volatility of Insmed stock compared to the systematic risk of the entire stock 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 Insmed stock's returns against your selected market. In other words, Insmed's beta of 0.19 provides an investor with an approximation of how much risk Insmed stock can potentially add to one of your existing portfolios.

Insmed Inc has relatively low volatility with skewness of 3.34 and kurtosis of 17.88. However, we advise all investors to independently investigate Insmed Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Insmed's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Insmed's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall. 3 Months Beta |Analyze Insmed Inc Demand TrendCheck current 90 days Insmed correlation with market (NYSE Composite)## Insmed Beta |

Insmed standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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 | 2.77 |

It is essential to understand the difference between upside risk (as represented by Insmed's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Insmed's daily returns or price. Since the actual investment returns on holding a position in insmed stock 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 Insmed.

## Using Insmed Put Option to Manage Risk

Put options written on Insmed grant holders of the option the right to sell a specified amount of Insmed at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Insmed Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Insmed's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Insmed will be realized, the loss incurred will be offset by the profits made with the option trade.

### Insmed's PUT expiring on 2023-10-20

Profit |

Insmed Price At Expiration |

### Current Insmed Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2023-10-20 PUT at $30.0 | -0.8772 | 0.0701 | 5 | 2023-10-20 | 3.8 - 4.1 | 4.53 | View |

Put | 2023-10-20 PUT at $25.0 | -0.3403 | 0.0974 | 36 | 2023-10-20 | 0.5 - 1.35 | 0.7 | View |

Put | 2023-10-20 PUT at $22.5 | -0.1256 | 0.0554 | 59 | 2023-10-20 | 0.1 - 0.4 | 0.23 | View |

## Insmed Inc Stock Volatility Analysis

Volatility refers to the frequency at which Insmed stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Insmed's price changes. Investors will then calculate the volatility of Insmed's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Insmed's volatility:

### Historical Volatility

This type of stock volatility measures Insmed's fluctuations based on previous trends. It's commonly used to predict Insmed's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.### Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Insmed's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Insmed's to be redeemed at a future date.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. Insmed Inc Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input..

## Insmed Projected Return Density Against Market

Given the investment horizon of 90 days Insmed has a beta of 0.1903 . This usually indicates as returns on the market go up, Insmed average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Insmed Inc will be expected to be much smaller as well.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 Insmed or Biotechnology 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 Insmed's price will be affected by overall stock 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 Insmed stock'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.

The company has an alpha of 0.3844, implying that it can generate a 0.38 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives an Insmed Price Volatility?

Several factors can influence a stock'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.## Insmed Stock Risk Measures

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 Insmed or Biotechnology 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 Insmed's price will be affected by overall stock 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 Insmed stock'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. Given the investment horizon of 90 days the coefficient of variation of Insmed is 594.04. The daily returns are distributed with a variance of 7.65 and standard deviation of 2.77. The mean deviation of Insmed Inc is currently at 1.74. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61

α | Alpha over NYSE Composite | 0.38 | |

β | Beta against NYSE Composite | 0.19 | |

σ | Overall volatility | 2.77 | |

Ir | Information ratio | 0.15 |

## Insmed Stock Return Volatility

Insmed historical daily return volatility represents how much of Insmed stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.7658% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5986% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Insmed Volatility

Volatility is a rate at which the price of Insmed 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 Insmed may increase or decrease. In other words, similar to Insmed's beta indicator, it measures the risk of Insmed and helps estimate the fluctuations that may happen in a short period of time. So if prices of Insmed 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.Last Reported | Projected for 2023 | ||

Market Capitalization | 2.7 B | 2.4 B |

Insmed's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Insmed Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Insmed's price varies over time.

## 3 ways to utilize Insmed's volatility to invest better

Higher Insmed's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Insmed Inc 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. Insmed Inc 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 Insmed Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Insmed's 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 Insmed's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## Insmed Investment Opportunity

Insmed Inc has a volatility of 2.77 and is 4.62 times more volatile than NYSE Composite.**24**of all equities and portfolios are less risky than Insmed. Compared to the overall equity markets, volatility of historical daily returns of Insmed Inc is lower than

**24 ()**of all global equities and portfolios over the last 90 days. Use Insmed Inc to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Insmed to be traded at $25.65 in 90 days.

### Significant diversification

The correlation between Insmed Inc and NYA is

**0.04**(i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Insmed Inc and NYA in the same portfolio, assuming nothing else is changed.## Insmed Additional Risk Indicators

The analysis of Insmed's 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 Insmed's investment and either accepting that risk or mitigating it. Along with some common measures of Insmed stock'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 | 0.0946 | |||

Market Risk Adjusted Performance | 2.01 | |||

Mean Deviation | 1.72 | |||

Semi Deviation | 1.26 | |||

Downside Deviation | 1.53 | |||

Coefficient Of Variation | 697.66 | |||

Standard Deviation | 2.73 |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## Insmed 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.

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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 Insmed 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. Insmed's 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, Insmed's 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 Insmed Inc.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Insmed Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

## Complementary Tools for Insmed Stock analysis

When running Insmed's price analysis, check to measure Insmed's 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 Insmed is operating at the current time. Most of Insmed's value examination focuses on studying past and present price action to predict the probability of Insmed's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Insmed's price. Additionally, you may evaluate how the addition of Insmed to your portfolios can decrease your overall portfolio volatility.

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Is Insmed's industry 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 Insmed. If investors know Insmed 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 Insmed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Earnings Share(5.43) | Revenue Per Share2.043 | Quarterly Revenue Growth0.184 | Return On Assets(0.33) | Return On Equity(14.53) |

The market value of Insmed Inc is measured differently than its book value, which is the value of Insmed that is recorded on the company's balance sheet. Investors also form their own opinion of Insmed's value that differs from its market value or its book value, called intrinsic value, which is Insmed'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 Insmed's market value can be influenced by many factors that don't directly affect Insmed'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 Insmed's value and its price as these two are different measures arrived at by different means. Investors typically determine if Insmed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Insmed'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.