Legend Biotech Corp Stock Volatility

LEGN Stock  USD 43.09  0.48  1.13%   
Legend Biotech Corp has Sharpe Ratio of -0.13, which conveys that the firm had a -0.13% return per unit of risk over the last 3 months. Legend Biotech exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Legend Biotech's Mean Deviation of 2.3, standard deviation of 2.95, and Risk Adjusted Performance of (0.11) to check out the risk estimate we provide. Key indicators related to Legend Biotech's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Legend Biotech 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 Legend daily returns, and it is calculated using variance and standard deviation. We also use Legend's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Legend Biotech volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Legend Biotech's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Legend Biotech's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Legend Biotech 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 Legend Biotech at lower prices. For example, an investor can purchase Legend 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 Legend Biotech'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 together with Legend Stock

  0.75ERNA Eterna TherapeuticsPairCorr
  0.69FLGC Flora Growth CorpPairCorr
  0.91BMY Bristol Myers Squibb Aggressive PushPairCorr

Moving against Legend Stock

  0.8ELYM Eliem TherapeuticsPairCorr
  0.55HCM HUTCHMED DRCPairCorr
  0.43LLY Eli LillyPairCorr
  0.41MRK Merck Company Financial Report 6th of August 2024 PairCorr
  0.39PFE Pfizer Inc Financial Report 6th of August 2024 PairCorr

Legend Biotech Market Sensitivity And Downside Risk

Legend Biotech's beta coefficient measures the volatility of Legend stock 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 Legend stock's returns against your selected market. In other words, Legend Biotech's beta of 0.66 provides an investor with an approximation of how much risk Legend Biotech stock can potentially add to one of your existing portfolios. Legend Biotech Corp exhibits very low volatility with skewness of 0.09 and kurtosis of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legend Biotech'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 Legend Biotech'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 financial instruments as prices fall.
3 Months Beta |Analyze Legend Biotech Corp Demand Trend
Check current 90 days Legend Biotech correlation with market (Dow Jones Industrial)

Legend Beta

    
  0.66  
Legend 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

    
  2.97  
It is essential to understand the difference between upside risk (as represented by Legend Biotech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Legend Biotech's daily returns or price. Since the actual investment returns on holding a position in legend 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 Legend Biotech.

Using Legend Put Option to Manage Risk

Put options written on Legend Biotech grant holders of the option the right to sell a specified amount of Legend Biotech 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 Legend Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Legend Biotech'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 Legend Biotech will be realized, the loss incurred will be offset by the profits made with the option trade.

Legend Biotech's PUT expiring on 2024-07-19

   Profit   
       Legend Biotech Price At Expiration  

Current Legend Biotech Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-07-19 PUT at $50.0-0.79670.038812024-07-196.6 - 9.55.6View
Put
2024-07-19 PUT at $45.0-0.6120.062112024-07-192.95 - 4.73.05View
Put
2024-07-19 PUT at $40.0-0.30860.05242092024-07-190.3 - 2.01.45View
View All Legend Biotech Options

Legend Biotech Corp Stock Volatility Analysis

Volatility refers to the frequency at which Legend Biotech stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Legend Biotech's price changes. Investors will then calculate the volatility of Legend Biotech'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 Legend Biotech's volatility:

Historical Volatility

This type of stock volatility measures Legend Biotech's fluctuations based on previous trends. It's commonly used to predict Legend Biotech'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 Legend Biotech'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 Legend Biotech'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. Legend Biotech Corp 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.

Legend Biotech Projected Return Density Against Market

Given the investment horizon of 90 days Legend Biotech has a beta of 0.6596 . This indicates as returns on the market go up, Legend Biotech average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Legend Biotech Corp 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 Legend Biotech 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 Legend Biotech'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 Legend 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.
Legend Biotech Corp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
Legend Biotech's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how legend stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Legend Biotech 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.

Legend Biotech Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Legend Biotech is -755.98. The daily returns are distributed with a variance of 8.84 and standard deviation of 2.97. The mean deviation of Legend Biotech Corp is currently at 2.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.66
α
Alpha over Dow Jones
-0.55
β
Beta against Dow Jones0.66
σ
Overall volatility
2.97
Ir
Information ratio -0.19

Legend Biotech Stock Return Volatility

Legend Biotech historical daily return volatility represents how much of Legend Biotech stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.9726% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.658% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Legend Biotech Volatility

Volatility is a rate at which the price of Legend Biotech 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 Legend Biotech may increase or decrease. In other words, similar to Legend's beta indicator, it measures the risk of Legend Biotech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Legend Biotech 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 ReportedProjected for Next Year
Selling And Marketing Expenses94.2 M67.2 M
Market Cap10.6 B5.7 B
Legend Biotech'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 Legend Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Legend Biotech's price varies over time.

3 ways to utilize Legend Biotech's volatility to invest better

Higher Legend Biotech's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Legend Biotech Corp 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. Legend Biotech Corp 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 Legend Biotech Corp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Legend Biotech'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 Legend Biotech's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Legend Biotech Investment Opportunity

Legend Biotech Corp has a volatility of 2.97 and is 4.5 times more volatile than Dow Jones Industrial. 26 percent of all equities and portfolios are less risky than Legend Biotech. You can use Legend Biotech Corp to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Legend Biotech to be traded at $47.4 in 90 days.

Average diversification

The correlation between Legend Biotech Corp and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Legend Biotech Corp and DJI in the same portfolio, assuming nothing else is changed.

Legend Biotech Additional Risk Indicators

The analysis of Legend Biotech'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 Legend Biotech's investment and either accepting that risk or mitigating it. Along with some common measures of Legend Biotech 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.
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.

Legend Biotech 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 Legend Biotech 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. Legend Biotech'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, Legend Biotech'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 Legend Biotech Corp.

Additional Information and Resources on Investing in Legend Stock

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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Legend Biotech Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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
(2.58)
Revenue Per Share
1.902
Quarterly Revenue Growth
1.587
Return On Assets
(0.18)
Return On Equity
(0.51)
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.