NetApp Stock Volatility

NTAP Stock  USD 69.05  1.94  2.89%   
We consider NetApp very steady. NetApp Inc has Sharpe Ratio of 0.0193, which conveys that the firm had 0.0193% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for NetApp, which you can use to evaluate the future volatility of the firm. Please verify NetApp Inc Downside Deviation of 2.06, mean deviation of 1.4, and Risk Adjusted Performance of 0.0171 to check out if the risk estimate we provide is consistent with the expected return of 0.0375%.
  
NetApp 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 NetApp daily returns, and it is calculated using variance and standard deviation. We also use NetApp's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of NetApp volatility.

720 Days Market Risk

Very steady

Chance of Distress

720 Days Economic Sensitivity

Almost mirrors the market

ESG Sustainability

While most ESG disclosures are voluntary, NetApp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to NetApp's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as NetApp 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 NetApp at lower prices. For example, an investor can purchase NetApp 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 NetApp'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 together with NetApp

+0.78AAPLApple Inc Aggressive PushPairCorr

NetApp Market Sensitivity And Downside Risk

NetApp's beta coefficient measures the volatility of NetApp 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 NetApp stock's returns against your selected market. In other words, NetApp's beta of 1.12 provides an investor with an approximation of how much risk NetApp stock can potentially add to one of your existing portfolios.
NetApp Inc currently demonstrates below-average downside deviation. It has Information Ratio of -0.07 and Jensen Alpha of -0.16. However, we advise investors to further question NetApp Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NetApp'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 NetApp'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 NetApp Inc Demand Trend
Check current 90 days NetApp correlation with market (NYSE Composite)

NetApp Beta

    
  1.12  
NetApp 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

    
  1.94  
It is essential to understand the difference between upside risk (as represented by NetApp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of NetApp's daily returns or price. Since the actual investment returns on holding a position in netapp 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 NetApp.

Using NetApp Put Option to Manage Risk

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

NetApp's PUT expiring on 2023-02-17

   Profit   
       NetApp Price At Expiration  

Current NetApp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2023-02-17 PUT at $77.5-0.83580.0302502023-02-179.5 - 11.16.2View
Put
2023-02-17 PUT at $75.0-0.9180.029252023-02-177.4 - 8.79.0View
Put
2023-02-17 PUT at $72.5-0.91330.0426192023-02-175.3 - 7.75.51View
Put
2023-02-17 PUT at $70.0-0.7560.0811242023-02-172.35 - 3.44.07View
Put
2023-02-17 PUT at $67.5-0.52750.10862032023-02-171.6 - 1.651.65View
Put
2023-02-17 PUT at $65.0-0.28570.08456012023-02-170.7 - 0.80.65View
Put
2023-02-17 PUT at $62.5-0.14240.04845732023-02-170.25 - 0.350.35View
Put
2023-02-17 PUT at $60.0-0.07810.02664042023-02-170.1 - 0.20.2View
Put
2023-02-17 PUT at $57.5-0.12350.0213892023-02-170.05 - 1.20.15View
View All NetApp Options

NetApp Inc Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures NetApp's fluctuations based on previous trends. It's commonly used to predict NetApp'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 NetApp'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 NetApp'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. NetApp Inc 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.
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NetApp Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.1167 . This indicates NetApp Inc market returns are highly reactive to returns on the market. As the market goes up or down, NetApp is expected to follow.
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 NetApp or Technology Hardware, Storage & Peripherals 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 NetApp'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 NetApp 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. NetApp Inc is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
NetApp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how netapp stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a NetApp 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.

NetApp 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 NetApp or Technology Hardware, Storage & Peripherals 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 NetApp'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 NetApp 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 NetApp is 5176.49. The daily returns are distributed with a variance of 3.76 and standard deviation of 1.94. The mean deviation of NetApp Inc is currently at 1.38. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.12
α
Alpha over NYSE Composite
-0.15
β
Beta against NYSE Composite1.12
σ
Overall volatility
1.94
Ir
Information ratio -0.07

NetApp Stock Return Volatility

NetApp historical daily return volatility represents how much of NetApp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.9401% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.0965% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About NetApp Volatility

Volatility is a rate at which the price of NetApp 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 NetApp may increase or decrease. In other words, similar to NetApp's beta indicator, it measures the risk of NetApp and helps estimate the fluctuations that may happen in a short period of time. So if prices of NetApp 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 ReportedProjected for 2023
Market Capitalization10.8 B11.2 B
NetApp'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 NetApp Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much NetApp's price varies over time.

3 ways to utilize NetApp's volatility to invest better

Higher NetApp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of NetApp Inc 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. NetApp Inc 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 NetApp Inc investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in NetApp'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 NetApp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

NetApp Investment Opportunity

NetApp Inc has a volatility of 1.94 and is 1.76 times more volatile than NYSE Composite. 16  of all equities and portfolios are less risky than NetApp. Compared to the overall equity markets, volatility of historical daily returns of NetApp Inc is lower than 16 () of all global equities and portfolios over the last 90 days. Use NetApp Inc to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of NetApp to be traded at $82.86 in 90 days.

Poor diversification

The correlation between NetApp Inc and NYA is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NetApp Inc and NYA in the same portfolio, assuming nothing else is changed.

NetApp Additional Risk Indicators

The analysis of NetApp'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 NetApp's investment and either accepting that risk or mitigating it. Along with some common measures of NetApp 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.
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.

NetApp 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 NetApp 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. NetApp'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, NetApp'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 NetApp Inc.
Additionally, see Correlation Analysis. Note that the NetApp Inc information on this page should be used as a complementary analysis to other NetApp'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running NetApp Inc price analysis, check to measure NetApp'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 NetApp is operating at the current time. Most of NetApp's value examination focuses on studying past and present price action to predict the probability of NetApp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move NetApp's price. Additionally, you may evaluate how the addition of NetApp to your portfolios can decrease your overall portfolio volatility.
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Is NetApp'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 NetApp. If investors know NetApp 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 NetApp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.48
Market Capitalization
14.5 B
Quarterly Revenue Growth
0.062
Return On Assets
0.0791
Return On Equity
1.5043
The market value of NetApp Inc is measured differently than its book value, which is the value of NetApp that is recorded on the company's balance sheet. Investors also form their own opinion of NetApp's value that differs from its market value or its book value, called intrinsic value, which is NetApp'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 NetApp's market value can be influenced by many factors that don't directly affect NetApp'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 NetApp's value and its price as these two are different measures arrived at by different means. Investors typically determine NetApp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetApp'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.