Legacy Education Alliance Stock Volatility
| LEAI Stock | USD 0.0004 0.00 0.00% |
Legacy Education is out of control given 3 months investment horizon. Legacy Education Alliance 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. We were able to analyze seventeen different technical indicators, which can help you to evaluate if expected returns of 1.32% are justified by taking the suggested risk. Use Legacy Education Alliance Standard Deviation of 11.58, mean deviation of 2.51, and Risk Adjusted Performance of 0.0233 to evaluate company specific risk that cannot be diversified away. Key indicators related to Legacy Education's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Legacy Education Pink Sheet 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 Legacy daily returns, and it is calculated using variance and standard deviation. We also use Legacy's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Legacy Education volatility.
Legacy |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Legacy Education at lower prices. For example, an investor can purchase Legacy stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Legacy Pink Sheet
Moving against Legacy Pink Sheet
| 0.62 | IVCAW | Investcorp India Acq | PairCorr |
| 0.56 | IDPUF | IDP Education Limited | PairCorr |
| 0.49 | EDU | New Oriental Education Downward Rally | PairCorr |
| 0.37 | LILM | Lilium NV | PairCorr |
| 0.33 | 060505DL5 | BANK AMER P | PairCorr |
Legacy Education Market Sensitivity And Downside Risk
Legacy Education's beta coefficient measures the volatility of Legacy pink sheet 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 Legacy pink sheet's returns against your selected market. In other words, Legacy Education's beta of 3.36 provides an investor with an approximation of how much risk Legacy Education pink sheet can potentially add to one of your existing portfolios. Legacy Education Alliance is displaying above-average volatility over the selected time horizon. Legacy Education Alliance appears to be a penny stock. Although Legacy Education Alliance may be, in fact, a solid short-term or long term investment, many penny pink sheets are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Legacy Education Alliance or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Legacy instrument if you perfectly time your entry and exit. However, remember that penny pink sheets that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Legacy Education Alliance Demand TrendCheck current 90 days Legacy Education correlation with market (Dow Jones Industrial)Legacy Beta |
Legacy 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 | 7.51 |
It is essential to understand the difference between upside risk (as represented by Legacy Education's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Legacy Education's daily returns or price. Since the actual investment returns on holding a position in legacy pink sheet 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 Legacy Education.
Legacy Education Alliance Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Legacy Education pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Legacy Education's price changes. Investors will then calculate the volatility of Legacy Education's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Legacy Education's volatility:
Historical Volatility
This type of pink sheet volatility measures Legacy Education's fluctuations based on previous trends. It's commonly used to predict Legacy Education's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Legacy Education's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Legacy Education'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. Legacy Education Alliance 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.
Legacy Education Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 3.364 . 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, Legacy Education 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 Legacy Education or Consumer Defensive 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 Legacy Education's price will be affected by overall pink sheet 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 Legacy pink sheet'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.
Legacy Education Alliance has an alpha of 0.2931, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Legacy Education Price Volatility?
Several factors can influence a pink sheet'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.Legacy Education Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Legacy Education is 568.09. The daily returns are distributed with a variance of 56.47 and standard deviation of 7.51. The mean deviation of Legacy Education Alliance is currently at 2.56. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.9
α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | 3.36 | |
σ | Overall volatility | 7.51 | |
Ir | Information ratio | 0.02 |
Legacy Education Pink Sheet Return Volatility
Legacy Education historical daily return volatility represents how much of Legacy Education pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 7.5144% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8639% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Legacy Education Volatility
Volatility is a rate at which the price of Legacy Education 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 Legacy Education may increase or decrease. In other words, similar to Legacy's beta indicator, it measures the risk of Legacy Education and helps estimate the fluctuations that may happen in a short period of time. So if prices of Legacy Education 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.Legacy Education Alliance, Inc., together with its subsidiaries, provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company was founded in 1996 and is headquartered in Cape Coral, Florida. Legacy Education operates under Education Training Services classification in the United States and is traded on OTC Exchange. It employs 19 people.
Legacy Education'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 Legacy Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Legacy Education's price varies over time.
3 ways to utilize Legacy Education's volatility to invest better
Higher Legacy Education's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Legacy Education Alliance 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. Legacy Education Alliance 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 Legacy Education Alliance investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Legacy Education'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 Legacy Education's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Legacy Education Investment Opportunity
Legacy Education Alliance has a volatility of 7.51 and is 8.73 times more volatile than Dow Jones Industrial. 67 percent of all equities and portfolios are less risky than Legacy Education. You can use Legacy Education Alliance to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Legacy Education to be traded at $4.0E-4 in 90 days.Modest diversification
The correlation between Legacy Education Alliance and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Legacy Education Alliance and DJI in the same portfolio, assuming nothing else is changed.
Legacy Education Additional Risk Indicators
The analysis of Legacy Education'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 Legacy Education's investment and either accepting that risk or mitigating it. Along with some common measures of Legacy Education pink sheet'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 | 0.0233 | |||
| Market Risk Adjusted Performance | 0.0606 | |||
| Mean Deviation | 2.51 | |||
| Coefficient Of Variation | 6418.01 | |||
| Standard Deviation | 11.58 | |||
| Variance | 134.02 | |||
| Information Ratio | 0.0179 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Legacy Education 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 Legacy Education 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. Legacy Education'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, Legacy Education'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 Legacy Education Alliance.
Complementary Tools for Legacy Pink Sheet analysis
When running Legacy Education's price analysis, check to measure Legacy Education'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 Legacy Education is operating at the current time. Most of Legacy Education's value examination focuses on studying past and present price action to predict the probability of Legacy Education's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Legacy Education's price. Additionally, you may evaluate how the addition of Legacy Education to your portfolios can decrease your overall portfolio volatility.
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