Legend Biotech Corp Stock Volatility
| LEGN Stock | USD 18.11 0.53 3.01% |
Legend Biotech Corp has Sharpe Ratio of -0.18, which conveys that the firm had a -0.18 % return per unit of risk over the last 3 months. Legend Biotech exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Legend Biotech's Mean Deviation of 2.51, standard deviation of 3.36, and Risk Adjusted Performance of (0.18) to check out the risk estimate we provide.
Sharpe Ratio = -0.1849
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Based on monthly moving average Legend Biotech is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Legend Biotech by adding Legend Biotech to a well-diversified portfolio.
Key indicators related to Legend Biotech's volatility include:90 Days Market Risk | Chance Of Distress | 90 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. Main indicators related to Legend Biotech's market risk premium analysis include:
Beta 0.0699 | Alpha (0.82) | Risk 3.5 | Sharpe Ratio (0.18) | Expected Return (0.65) |
Moving together with Legend Stock
| 0.81 | OSE | OSE Pharma SA | PairCorr |
| 0.87 | RAC | Race Oncology Earnings Call This Week | PairCorr |
| 0.67 | VCEL | Vericel Corp Ord | PairCorr |
| 0.72 | DRMA | Dermata Therapeutics | PairCorr |
Moving against Legend Stock
| 0.85 | DRTS | Alpha Tau Medical | PairCorr |
| 0.81 | DSGN | Design Therapeutics | PairCorr |
| 0.8 | EQ | Equillium | PairCorr |
| 0.77 | 6C1 | CytomX Therapeutics | PairCorr |
| 0.66 | DNTH | Dianthus Therapeutics | PairCorr |
| 0.64 | VERA | Vera Therapeutics | PairCorr |
| 0.62 | GXEA | Galapagos NV Earnings Call This Week | PairCorr |
| 0.61 | DRUG | Bright Minds Biosciences | PairCorr |
| 0.57 | SAB | Sonic Healthcare Earnings Call Tomorrow | PairCorr |
| 0.54 | 8VP1 | AVRICORE HEALTH INC | 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 0.0699 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 -0.27 and kurtosis of 1.22. 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 TrendCheck current 90 days Legend Biotech correlation with market (Dow Jones Industrial)Legend Biotech Volatility and Downside Risk
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.
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 2026-05-15
Profit |
| Legend Biotech Price At Expiration |
Current Legend Biotech Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | LEGN260515P00012500 | -0.191588 | 0.018741 | 4 | 2026-05-15 | 0.0 - 2.4 | 0.0 | View |
Put | LEGN260515P00015000 | -0.235644 | 0.046852 | 83 | 2026-05-15 | 0.0 - 1.1 | 0.0 | View |
Put | LEGN260515P00017500 | -0.386964 | 0.080103 | 757 | 2026-05-15 | 0.7 - 2.35 | 0.0 | View |
Put | LEGN260515P00020000 | -0.557915 | 0.070493 | 605 | 2026-05-15 | 2.45 - 4.2 | 0.0 | View |
Put | LEGN260515P00022500 | -0.684662 | 0.060017 | 268 | 2026-05-15 | 3.5 - 7.1 | 0.0 | View |
Put | LEGN260515P00025000 | -0.79736 | 0.04893 | 223 | 2026-05-15 | 5.4 - 9.3 | 0.0 | View |
Put | LEGN260515P00027500 | -0.876703 | 0.035944 | 617 | 2026-05-15 | 7.6 - 11.6 | 0.0 | View |
Put | LEGN260515P00030000 | -0.887929 | 0.029314 | 27 | 2026-05-15 | 10.1 - 14.1 | 0.0 | View |
Put | LEGN260515P00032500 | -0.88195 | 0.026308 | 13 | 2026-05-15 | 14.3 - 15.0 | 0.0 | View |
Put | LEGN260515P00035000 | -0.913758 | 0.020762 | 312 | 2026-05-15 | 16.7 - 17.4 | 0.0 | View |
Put | LEGN260515P00037500 | -0.916838 | 0.018742 | 10 | 2026-05-15 | 19.2 - 19.9 | 0.0 | View |
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 0.0699 . 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.
Predicted Return Density |
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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 investor attention to the company. This positive attention may impact 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 -540.8. The daily returns are distributed with a variance of 12.22 and standard deviation of 3.5. The mean deviation of Legend Biotech Corp is currently at 2.64. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.82 | |
β | Beta against Dow Jones | 0.07 | |
σ | Overall volatility | 3.50 | |
Ir | Information ratio | -0.26 |
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 3.495% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7573% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Legend Stock performing well and Legend Biotech Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Legend Biotech's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| IRON | 2.67 | (0.32) | 0.00 | (2.76) | 0.00 | 4.42 | 27.84 | |||
| ZLAB | 1.98 | (0.14) | 0.00 | (0.20) | 0.00 | 6.01 | 10.32 | |||
| AAPG | 2.71 | (0.34) | 0.00 | (0.97) | 0.00 | 5.25 | 16.72 | |||
| TARS | 1.62 | (0.30) | 0.00 | (0.38) | 0.00 | 3.48 | 10.88 | |||
| ADPT | 2.98 | 0.22 | 0.05 | 1.89 | 3.57 | 9.94 | 29.55 | |||
| SRRK | 2.99 | 0.66 | 0.23 | 0.69 | 2.47 | 7.07 | 31.68 | |||
| CELC | 2.23 | 0.48 | 0.19 | 1.12 | 2.08 | 5.87 | 17.89 | |||
| CGON | 2.96 | 0.53 | 0.19 | 0.49 | 2.46 | 5.15 | 34.61 | |||
| XENE | 1.57 | 0.06 | 0.02 | 0.24 | 1.87 | 3.29 | 10.56 | |||
| IDYA | 2.00 | (0.07) | 0.00 | (0.05) | 0.00 | 4.86 | 10.56 |
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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 169.6 M | 178.1 M | |
| Market Cap | 2.7 B | 2.5 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.
Legend Biotech Investment Opportunity
Legend Biotech Corp has a volatility of 3.5 and is 4.61 times more volatile than Dow Jones Industrial. 31 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 an unexpected upward trend. Watch out for market signals. Check odds of Legend Biotech to be traded at $21.73 in 90 days.Pay attention - limited upside
The correlation between Legend Biotech Corp and DJI is -0.78 (i.e., Pay attention - limited upside) 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.
| Risk Adjusted Performance | (0.18) | |||
| Market Risk Adjusted Performance | (11.63) | |||
| Mean Deviation | 2.51 | |||
| Coefficient Of Variation | (418.07) | |||
| Standard Deviation | 3.36 | |||
| Variance | 11.29 | |||
| Information Ratio | (0.25) |
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.
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 census. 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..
Will Biotechnology sector continue expanding? Could Legend diversify its offerings? Factors like these will boost the valuation of Legend Biotech. Expected growth trajectory for Legend significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Legend Biotech data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share (1.28) | Revenue Per Share | Quarterly Revenue Growth 0.7 | Return On Assets | Return On Equity |
Investors evaluate Legend Biotech Corp using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Legend Biotech's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Legend Biotech's market price to deviate significantly from intrinsic value.
Understanding that Legend Biotech's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Legend Biotech represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Legend Biotech's market price signifies the transaction level at which participants voluntarily complete trades.