Legend Biotech Sortino Ratio
| LEGN Stock | | | USD 28.96 0.45 1.58% |
The Sortino Ratio measures risk-adjusted return using only downside deviation rather than total volatility. Unlike the Sharpe Ratio, which penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only returns below a target threshold, making it a more targeted measure of harmful volatility. Below is Legend Biotech's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
Legend Biotech carries a Sortino Ratio of 0.3016, consistent with its current reading on this measure. This reflects Legend Biotech's positioning relative to its own recent range within Biotechnology.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.3016 | |
| ER[a] | = | Expected return on investing in Legend Biotech |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
Legend Biotech falls above the 0.13 peer average for Sortino Ratio. Xenon Pharmaceuticals leads at 0.3611 while Tarsus Pharmaceuticals registers the lowest at 0.0111. Legend Biotech's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Sortino Ratio Relative To Other Indicators
The chart below plots Sortino Ratio against Maximum Drawdown for Legend Biotech and its peers. Each point represents one equity — position along the horizontal axis shows Sortino Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Legend Biotech shows nearly
85.89 of Maximum Drawdown per unit of Sortino Ratio (
0.30 versus
25.90 ). This indicates Maximum Drawdown substantially exceeds Sortino Ratio for Legend Biotech.
Methodology, Assumptions & Data Sources
The current Sortino Ratio for Legend Biotech is 0.3016. Sortino Ratio for Legend Biotech is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Legend Biotech operates in the health care sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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