Legend Stock Volatility

LEGN Stock  USD 48.00  0.14  0.29%   
Legend BiotechCorp has Sharpe Ratio of -0.0088, which conveys that the firm had -0.0088% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Legend BiotechCorp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Legend BiotechCorp risk adjusted performance of (0.003848), and Mean Deviation of 2.19 to check out the risk estimate we provide.
Legend BiotechCorp 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 BiotechCorp volatility.

30 Days Market Risk

Very steady

Chance of Distress

Below Average

30 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Legend BiotechCorp 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 BiotechCorp 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 BiotechCorp'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 BiotechCorp

+0.65MBIOMustang Bio Financial Report 11th of May 2023 PairCorr
+0.73MDGLMadrigal Pharmaceuticals Fiscal Quarter End 31st of March 2023 PairCorr
+0.65EQEquillium Fiscal Quarter End 31st of March 2023 PairCorr

Moving against Legend BiotechCorp

-0.55MGTAMagenta Therapeutics Financial Report 15th of May 2023 PairCorr
-0.47DMACDiaMedica Therapeutics Financial Report 3rd of May 2023 PairCorr
-0.45MGNXMacroGenics Fiscal Quarter End 31st of March 2023 PairCorr

Legend BiotechCorp Market Sensitivity And Downside Risk

Legend BiotechCorp's beta coefficient measures the volatility of Legend 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 Legend stock's returns against your selected market. In other words, Legend BiotechCorp's beta of 1.41 provides an investor with an approximation of how much risk Legend BiotechCorp stock can potentially add to one of your existing portfolios.
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 Trend
Check current 90 days Legend BiotechCorp correlation with market (NYSE Composite)

Legend Beta

Legend 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

It is essential to understand the difference between upside risk (as represented by Legend BiotechCorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Legend BiotechCorp'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 BiotechCorp.

Using Legend Put Option to Manage Risk

Put options written on Legend BiotechCorp grant holders of the option the right to sell a specified amount of Legend BiotechCorp 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 BiotechCorp'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 BiotechCorp will be realized, the loss incurred will be offset by the profits made with the option trade.

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

       Legend BiotechCorp Price At Expiration  

Current Legend BiotechCorp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2023-04-21 PUT at $50.0-0.61390.075922023-04-212.3 - 3.80.0View
2023-04-21 PUT at $45.0-0.28220.0515912023-04-211.0 - 1.41.25View
2023-04-21 PUT at $40.0-0.09540.0231802023-04-210.0 - 2.30.35View
View All Legend BiotechCorp Options

Legend BiotechCorp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Legend BiotechCorp's fluctuations based on previous trends. It's commonly used to predict Legend BiotechCorp'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 BiotechCorp'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 BiotechCorp's to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. Legend BiotechCorp 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 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.
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 BiotechCorp or Healthcare 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 BiotechCorp'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.
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.
   Predicted Return Density   
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:


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

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 BiotechCorp or Healthcare 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 BiotechCorp'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. Given the investment horizon of 90 days the coefficient of variation of Legend BiotechCorp is -11342.28. The daily returns are distributed with a variance of 7.87 and standard deviation of 2.81. The mean deviation of Legend BiotechCorp is currently at 2.2. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.95
Alpha over NYSE Composite
Beta against NYSE Composite1.41
Overall volatility
Information ratio -0.01

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.
 Performance (%) 

About Legend BiotechCorp Volatility

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.
Please read more on our technical analysis page.
Last ReportedProjected for 2023
Market Capitalization7.8 B7.1 B
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.

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

Higher Legend BiotechCorp'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 BiotechCorp 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 BiotechCorp 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 BiotechCorp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Legend BiotechCorp'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 BiotechCorp'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 BiotechCorp Investment Opportunity

Legend BiotechCorp has a volatility of 2.81 and is 2.99 times more volatile than NYSE Composite. 24  of all equities and portfolios are less risky than Legend BiotechCorp. Compared to the overall equity markets, volatility of historical daily returns of Legend BiotechCorp is lower than 24 () of all global equities and portfolios over the last 90 days. Use Legend BiotechCorp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of Legend BiotechCorp to be traded at $47.52 in 90 days.

Very weak diversification

The correlation between Legend BiotechCorp and NYA is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Legend BiotechCorp and NYA in the same portfolio, assuming nothing else is changed.

Legend BiotechCorp Additional Risk Indicators

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.

Legend BiotechCorp 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 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.

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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.
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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.
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
Return On Equity
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.