# Liquidia Stock Volatility

LQDA | Stock | ## USD 4.80 0.08 1.64% |

Liquidia Corp has Sharpe Ratio of -0.0488, which conveys that the firm had -0.0488% 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. Liquidia Corp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Liquidia Corp risk adjusted performance of (0.10), and Mean Deviation of 3.24 to check out the risk estimate we provide.

Liquidia |

Liquidia Corp 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 Liquidia daily returns, and it is calculated using variance and standard deviation. We also use Liquidia's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Liquidia Corp volatility.

### 30 Days Market Risk

### Chance of Distress

### 30 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Liquidia Corp 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 Liquidia Corp at lower prices. For example, an investor can purchase Liquidia 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 Liquidia Corp'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 against Liquidia Corp

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## Liquidia Corp Market Sensitivity And Downside Risk

Liquidia Corp's beta coefficient measures the volatility of Liquidia 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 Liquidia stock's returns against your selected market. In other words, Liquidia Corp's beta of 0.32 provides an investor with an approximation of how much risk Liquidia Corp stock can potentially add to one of your existing portfolios.

Liquidia Corp exhibits very low volatility with skewness of -1.76 and kurtosis of 14.4. However, we advise investors to further study Liquidia Corp 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 Liquidia Corp'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 Liquidia Corp'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 Liquidia Corp Demand TrendCheck current 90 days Liquidia Corp correlation with market (DOW)## Liquidia Beta |

Liquidia 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 | 4.22 |

It is essential to understand the difference between upside risk (as represented by Liquidia Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Liquidia Corp's daily returns or price. Since the actual investment returns on holding a position in liquidia 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 Liquidia Corp.

## Using Liquidia Put Option to Manage Risk

Put options written on Liquidia Corp grant holders of the option the right to sell a specified amount of Liquidia Corp 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 Liquidia Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Liquidia Corp'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 Liquidia Corp will be realized, the loss incurred will be offset by the profits made with the option trade.

### Liquidia Corp's PUT expiring on 2022-12-16

Profit |

Share

Liquidia Corp Price At Expiration |

### Current Liquidia Corp Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2022-12-16 PUT at $5.0 | -0.5326 | 0.5536 | 788 | 2022-12-16 | 0.25 - 0.5 | 0.35 | View |

## Liquidia Corp Stock Volatility Analysis

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

### Historical Volatility

This type of stock volatility measures Liquidia Corp's fluctuations based on previous trends. It's commonly used to predict Liquidia Corp'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 Liquidia Corp'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 Liquidia Corp'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. The Median Price line plots median indexes of Liquidia Corp price series..

## Liquidia Corp Projected Return Density Against Market

Given the investment horizon of 90 days Liquidia Corp has a beta of 0.3198 . This indicates as returns on the market go up, Liquidia Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Liquidia 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 Liquidia Corp 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 Liquidia Corp'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 Liquidia 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. Liquidia Corp is significantly underperforming DOW. Predicted Return Density |

Returns |

## What Drives a Liquidia Corp Price Volatility?

Several factors can influence a Stock's stock 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.## Liquidia Corp 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 Liquidia Corp 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 Liquidia Corp'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 Liquidia 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 Liquidia Corp is -2049.87. The daily returns are distributed with a variance of 17.81 and standard deviation of 4.22. The mean deviation of Liquidia Corp is currently at 2.72. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42

α | Alpha over DOW | -0.46 | |

β | Beta against DOW | 0.32 | |

σ | Overall volatility | 4.22 | |

Ir | Information ratio | -0.08 |

## Liquidia Corp Stock Return Volatility

Liquidia Corp historical daily return volatility represents how much of Liquidia Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 4.2204% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.3869% risk (volatility on return distribution) over the 90 days horizon. Performance (%) |

Timeline |

## About Liquidia Corp Volatility

Volatility is a rate at which the price of Liquidia Corp 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 Liquidia Corp may increase or decrease. In other words, similar to Liquidia's beta indicator, it measures the risk of Liquidia Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Liquidia Corp 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 2022 | ||

Market Capitalization | 253.1 M | 215.3 M |

## Liquidia Corp Investment Opportunity

Liquidia Corp has a volatility of 4.22 and is 3.04 times more volatile than DOW.**36**of all equities and portfolios are less risky than Liquidia Corp. Compared to the overall equity markets, volatility of historical daily returns of Liquidia Corp is lower than

**36 ()**of all global equities and portfolios over the last 90 days. Use Liquidia Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Liquidia Corp to be traded at $4.66 in 90 days.

### Significant diversification

The correlation between Liquidia Corp and DJI is

**0.08**(i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Liquidia Corp and DJI in the same portfolio, assuming nothing else is changed.## Liquidia Corp Additional Risk Indicators

The analysis of Liquidia Corp'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 Liquidia Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Liquidia Corp 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 | (0.10) | |||

Market Risk Adjusted Performance | (1.41) | |||

Mean Deviation | 3.24 | |||

Coefficient Of Variation | (1,278) | |||

Standard Deviation | 5.66 | |||

Variance | 32.03 | |||

Information Ratio | (0.08) |

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.

## Liquidia Corp 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 Liquidia Corp 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. Liquidia Corp'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, Liquidia Corp'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 Liquidia Corp.

Additionally, see Correlation Analysis. Note that the Liquidia Corp information on this page should be used as a complementary analysis to other Liquidia Corp'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

## Complementary Tools for Liquidia Stock analysis

When running Liquidia Corp price analysis, check to measure Liquidia Corp'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 Liquidia Corp is operating at the current time. Most of Liquidia Corp's value examination focuses on studying past and present price action to predict the probability of Liquidia Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Liquidia Corp's price. Additionally, you may evaluate how the addition of Liquidia Corp to your portfolios can decrease your overall portfolio volatility.

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Is Liquidia Corp'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 Liquidia Corp. If investors know Liquidia 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 Liquidia Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Market Capitalization 321.8 M | Quarterly Revenue Growth YOY (0.004) | Return On Assets (0.23) | Return On Equity (0.55) |

The market value of Liquidia Corp is measured differently than its book value, which is the value of Liquidia that is recorded on the company's balance sheet. Investors also form their own opinion of Liquidia Corp's value that differs from its market value or its book value, called intrinsic value, which is Liquidia Corp'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 Liquidia Corp's market value can be influenced by many factors that don't directly affect Liquidia Corp'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 Liquidia Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Liquidia Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liquidia Corp'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.