Correlation Between Intapp and NetApp

Can any of the company-specific risk be diversified away by investing in both Intapp and NetApp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intapp and NetApp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intapp Inc and NetApp Inc, you can compare the effects of market volatilities on Intapp and NetApp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intapp with a short position of NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intapp and NetApp.

Diversification Opportunities for Intapp and NetApp

-0.45

Correlation Coefficient

Intapp  NetApp

Very good diversification

The 3 months correlation between Intapp and NetApp is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intapp Inc and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc and Intapp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intapp Inc are associated (or correlated) with NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of Intapp i.e., Intapp and NetApp go up and down completely randomly.

Pair Corralation between Intapp and NetApp

Given the investment horizon of 90 days Intapp Inc is expected to under-perform the NetApp. In addition to that, Intapp is 1.41 times more volatile than NetApp Inc. It trades about -0.18 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.19 per unit of volatility. If you would invest  8,757  in NetApp Inc on April 28, 2025 and sell it today you would earn a total of  1,737  from holding NetApp Inc or generate 19.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intapp Inc  vs.  NetApp Inc

Intapp Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intapp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

NetApp Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NetApp Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, NetApp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intapp and NetApp

The main advantage of trading using opposite Intapp and NetApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intapp position performs unexpectedly, NetApp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NetApp will offset losses from the drop in NetApp's long position.

The idea behind Intapp Inc and NetApp Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.