Lyell Immunopharma Stock Volatility
| LYEL Stock | USD 0.58 0.05 9.43% |
As of now, Lyell Stock is abnormally volatile. Lyell Immunopharma has Sharpe Ratio of close to zero, which conveys that the firm had a close to zero % return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Lyell Immunopharma, which you can use to evaluate the volatility of the firm. Please verify Lyell Immunopharma's Mean Deviation of 4.16, risk adjusted performance of (0.06), and Standard Deviation of 5.53 to check out if the risk estimate we provide is consistent with the expected return of 0.0325%. Key indicators related to Lyell Immunopharma's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Lyell Immunopharma 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 Lyell daily returns, and it is calculated using variance and standard deviation. We also use Lyell's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lyell Immunopharma volatility.
Lyell |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Lyell Immunopharma at lower prices. For example, an investor can purchase Lyell 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 against Lyell Stock
Lyell Immunopharma Market Sensitivity And Downside Risk
Lyell Immunopharma's beta coefficient measures the volatility of Lyell 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 Lyell stock's returns against your selected market. In other words, Lyell Immunopharma's beta of 1.51 provides an investor with an approximation of how much risk Lyell Immunopharma stock can potentially add to one of your existing portfolios. Lyell Immunopharma exhibits very low volatility with skewness of 0.6 and kurtosis of 2.2. Lyell Immunopharma is a potential penny stock. Although Lyell Immunopharma may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Lyell Immunopharma. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Lyell instrument if you perfectly time your entry and exit. However, remember that penny stocks 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 Lyell Immunopharma Demand TrendCheck current 90 days Lyell Immunopharma correlation with market (Dow Jones Industrial)Lyell Beta |
Lyell 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 | 5.46 |
It is essential to understand the difference between upside risk (as represented by Lyell Immunopharma's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Lyell Immunopharma's daily returns or price. Since the actual investment returns on holding a position in lyell 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 Lyell Immunopharma.
Lyell Immunopharma Stock Volatility Analysis
Volatility refers to the frequency at which Lyell Immunopharma stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lyell Immunopharma's price changes. Investors will then calculate the volatility of Lyell Immunopharma'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 Lyell Immunopharma's volatility:
Historical Volatility
This type of stock volatility measures Lyell Immunopharma's fluctuations based on previous trends. It's commonly used to predict Lyell Immunopharma'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 Lyell Immunopharma'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 Lyell Immunopharma'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. Lyell Immunopharma 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.
Lyell Immunopharma Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.5082 . 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, Lyell Immunopharma 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 Lyell Immunopharma 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 Lyell Immunopharma'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 Lyell 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.
Lyell Immunopharma has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Lyell Immunopharma 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.Lyell Immunopharma Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Lyell Immunopharma is 16771.9. The daily returns are distributed with a variance of 29.8 and standard deviation of 5.46. The mean deviation of Lyell Immunopharma is currently at 4.07. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | -0.3 | |
β | Beta against Dow Jones | 1.51 | |
σ | Overall volatility | 5.46 | |
Ir | Information ratio | -0.06 |
Lyell Immunopharma Stock Return Volatility
Lyell Immunopharma historical daily return volatility represents how much of Lyell Immunopharma stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.459% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8446% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Lyell Immunopharma Volatility
Volatility is a rate at which the price of Lyell Immunopharma 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 Lyell Immunopharma may increase or decrease. In other words, similar to Lyell's beta indicator, it measures the risk of Lyell Immunopharma and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lyell Immunopharma 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 | ||
| Market Cap | 3.7 B | 3.3 B |
Lyell Immunopharma'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 Lyell Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Lyell Immunopharma's price varies over time.
3 ways to utilize Lyell Immunopharma's volatility to invest better
Higher Lyell Immunopharma's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Lyell Immunopharma 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. Lyell Immunopharma 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 Lyell Immunopharma investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Lyell Immunopharma'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 Lyell Immunopharma's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Lyell Immunopharma Investment Opportunity
Lyell Immunopharma has a volatility of 5.46 and is 6.5 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Lyell Immunopharma is lower than 48 percent of all global equities and portfolios over the last 90 days. You can use Lyell Immunopharma to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Lyell Immunopharma to be traded at $0.725 in 90 days.Modest diversification
The correlation between Lyell Immunopharma and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lyell Immunopharma and DJI in the same portfolio, assuming nothing else is changed.
Lyell Immunopharma Additional Risk Indicators
The analysis of Lyell Immunopharma'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 Lyell Immunopharma's investment and either accepting that risk or mitigating it. Along with some common measures of Lyell Immunopharma 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 | (0.06) | |||
| Market Risk Adjusted Performance | (0.26) | |||
| Mean Deviation | 4.16 | |||
| Coefficient Of Variation | (1,398) | |||
| Standard Deviation | 5.53 | |||
| Variance | 30.61 | |||
| Information Ratio | (0.06) |
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.
Lyell Immunopharma 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 Lyell Immunopharma 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. Lyell Immunopharma'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, Lyell Immunopharma'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 Lyell Immunopharma.
When determining whether Lyell Immunopharma is a strong investment it is important to analyze Lyell Immunopharma's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lyell Immunopharma's future performance. For an informed investment choice regarding Lyell Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lyell Immunopharma. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. For more information on how to buy Lyell Stock please use our How to buy in Lyell Stock guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Biotechnology space 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 Lyell Immunopharma. If investors know Lyell 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 Lyell Immunopharma 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 Lyell Immunopharma is measured differently than its book value, which is the value of Lyell that is recorded on the company's balance sheet. Investors also form their own opinion of Lyell Immunopharma's value that differs from its market value or its book value, called intrinsic value, which is Lyell Immunopharma'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 Lyell Immunopharma's market value can be influenced by many factors that don't directly affect Lyell Immunopharma'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 Lyell Immunopharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lyell Immunopharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lyell Immunopharma'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.