Legend Stock Volatility

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Legend BiotechCorp Market Sensitivity And Downside Risk

Legend BiotechCorp exhibits very low volatility with skewness of 0.39 and kurtosis of 0.29. However, we advise investors to further study Legend BiotechCorp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legend BiotechCorp'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 BiotechCorp'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 Legend BiotechCorp Demand TrendCheck current 90 days Legend BiotechCorp correlation with market (NYSE Composite)

Legend Beta

1.41

Standard Deviation

2.81

Using Legend Put Option to Manage Risk

Legend BiotechCorp's PUT expiring on 2023-04-21

Legend BiotechCorp Stock Volatility Analysis

Legend BiotechCorp Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.4127 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Legend BiotechCorp will likely underperform. The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Legend BiotechCorp is significantly underperforming NYSE Composite. Legend BiotechCorp'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 BiotechCorp 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 BiotechCorp Stock Risk Measures

Legend BiotechCorp Stock Return Volatility

Legend BiotechCorp historical daily return volatility represents how much of Legend BiotechCorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.8054% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.9442% volatility on return distribution over the 90 days horizon.

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

Legend BiotechCorp'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 BiotechCorp's price varies over time.

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

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 BiotechCorp 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 BiotechCorp'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 BiotechCorp'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 BiotechCorp.

Check out Correlation Analysis. To learn how to invest in Legend Stock please use our How to Invest in Legend BiotechCorp guide. Note that the Legend BiotechCorp information on this page should be used as a complementary analysis to other Legend BiotechCorp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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

Is Legend BiotechCorp'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 Legend BiotechCorp. 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 BiotechCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Legend BiotechCorp 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 BiotechCorp's value that differs from its market value or its book value, called intrinsic value, which is Legend BiotechCorp'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 BiotechCorp's market value can be influenced by many factors that don't directly affect Legend BiotechCorp'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 BiotechCorp's value and its price as these two are different measures arrived at by different means. Investors typically determine Legend BiotechCorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Legend BiotechCorp'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.