Correlation Between NetApp and Artificial Intelligence

Can any of the company-specific risk be diversified away by investing in both NetApp and Artificial Intelligence 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 NetApp and Artificial Intelligence into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NetApp Inc and Artificial Intelligence Technology, you can compare the effects of market volatilities on NetApp and Artificial Intelligence 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 NetApp with a short position of Artificial Intelligence. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetApp and Artificial Intelligence.

Diversification Opportunities for NetApp and Artificial Intelligence

-0.9

Correlation Coefficient

NetApp  Artificial Intelligence

Pay attention - limited upside

The 3 months correlation between NetApp and Artificial is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding NetApp Inc and Artificial Intelligence Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artificial Intelligence and NetApp 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 NetApp Inc are associated (or correlated) with Artificial Intelligence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artificial Intelligence has no effect on the direction of NetApp i.e., NetApp and Artificial Intelligence go up and down completely randomly.

Pair Corralation between NetApp and Artificial Intelligence

Given the investment horizon of 90 days NetApp Inc is expected to generate 0.23 times more return on investment than Artificial Intelligence. However, NetApp Inc is 4.29 times less risky than Artificial Intelligence. It trades about 0.15 of its potential returns per unit of risk. Artificial Intelligence Technology is currently generating about -0.1 per unit of risk. If you would invest  9,188  in NetApp Inc on May 2, 2025 and sell it today you would earn a total of  1,282  from holding NetApp Inc or generate 13.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

NetApp Inc  vs.  Artificial Intelligence Techno

NetApp Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NetApp Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, NetApp reported solid returns over the last few months and may actually be approaching a breakup point.

Artificial Intelligence

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artificial Intelligence Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly 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.

Pair Trading with NetApp and Artificial Intelligence

The main advantage of trading using opposite NetApp and Artificial Intelligence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetApp position performs unexpectedly, Artificial Intelligence 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 Artificial Intelligence will offset losses from the drop in Artificial Intelligence's long position.

The idea behind NetApp Inc and Artificial Intelligence Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.