Cloudflare Stock Volatility

NET Stock  USD 217.49  5.97  2.82%   
Cloudflare shows an elevated volatility profile over the current evaluation window. From an efficiency perspective, Cloudflare records a Sharpe Ratio (Efficiency) of 0.057, reflecting risk-adjusted gains over the last 3 months. Our analysis points to 30 technical indicators driving current risk behavior.

Sharpe Ratio = 0.057

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For Cloudflare, recent data highlights a Market Risk Adjusted Performance of 0.1%, a Risk of 3.84, and a Risk Adjusted Performance of 0.02%. Recent moving average trends suggest Cloudflare is tracking at about 4% of its historical return corridor. Portfolio-level outcomes depend on how the asset interacts with other holdings.
Key indicators related to Cloudflare's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
The volatility profile of Cloudflare determines how much Cloudflare's price can move in either direction over a given time frame. Investors use volatility estimates to size positions, set stop-loss levels, and price the cost of hedging Cloudflare exposure.

Volatility Strategy

Volatility in Cloudflare reflects changing market conditions that influence diversification outcomes. Current statistical measures show total volatility near 3.84% with a beta coefficient of 0.8, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of 0.057, evaluates return per unit of total risk. An alpha value of 0.078 reflects performance relative to systematic market exposure. Expected return estimates near 0.22% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Growth repricing can increase short-term volatility.

Main indicators related to Cloudflare's market risk premium analysis include:

 Beta
0.8
 Alpha
0.078
 Risk
3.84
 Sharpe Ratio
0.057
 Expected Return
0.22

Moving together with Cloudflare Stock

  0.71WAVE Eco Wave Power Upward RallyPairCorr
  0.63DAVE Dave IncPairCorr

Moving against Cloudflare Stock

  0.35JAMF Jamf HoldingPairCorr

Sensitivity To Market

The beta coefficient of 0.8 for Cloudflare measures how its returns respond to broader market changes. In regression terms, beta captures the slope between asset returns and index returns. Historical volatility is currently near 3.84%.Cloudflare return patterns over the selected horizon reflect a forward elevated level of variability, based on dispersion and downside-focused statistics. Options markets imply a forward-looking volatility estimate near 74.0%. This suggests the market is pricing in the possibility of wider future price swings compared to recent historical dispersion. For Cloudflare, dispersion metrics describe what happened historically across the selected window.
Check current 90 days Cloudflare correlation with market (Dow Jones Industrial)
α0.08   β0.80
3 Months Beta |Analyze Cloudflare Demand Trend
Check current 90 days Cloudflare correlation with market (Dow Jones Industrial)

Downside Risk

Cloudflare standard deviation quantifies the typical daily price movement relative to its average over your selected period. Volatile instruments show high standard deviation; stable instruments show low.
Standard Deviation
    
  3.84  
The difference between upside risk and downside risk is meaningful for Cloudflare investors. Upside risk is measured by Cloudflare's standard deviation, while downside risk is captured by semi-deviation or downside deviation of Cloudflare's daily returns. For Cloudflare, recent data highlights a Downside Deviation of 4.05, a Downside Variance of 16.43, and a Maximum Drawdown of 19.40.

Using Cloudflare Put Option to Manage Risk Based on 2026-06-18 Contracts

For Cloudflare, recent data highlights an Option Max Pain Price of 210. Investors holding Cloudflare can use put options to hedge against potential price declines. A put option on Cloudflare Stock gives the buyer the right to sell Cloudflare at the strike price until expiration.

Cloudflare's PUT expiring on 2026-06-18

   Profit   
       Cloudflare Price At Expiration  

Current Cloudflare Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
NET260618P00300000-0.9455860.00237452026-06-1887.55 - 90.250.0View
Put
NET260618P00280000-0.8473760.00462612026-06-1869.25 - 72.850.0View
Put
NET260618P00270000-0.8169890.005301222026-06-1861.55 - 64.30.0View
Put
NET260618P00260000-0.7411520.005913112026-06-1853.4 - 56.150.0View
Put
NET260618P00250000-0.6783490.00630442026-06-1846.25 - 48.750.0View
Put
NET260618P00240000-0.6192720.0066151212026-06-1839.1 - 41.50.0View
Put
NET260618P00230000-0.5539750.006684642026-06-1832.95 - 34.90.0View
Put
NET260618P00220000-0.488760.006639952026-06-1827.0 - 29.00.0View
Put
NET260618P00210000-0.4230020.006391362026-06-1821.8 - 23.550.0View
Put
NET260618P00200000-0.3586660.0060192842026-06-1817.6 - 18.450.0View
Put
NET260618P00195000-0.3283290.005672602026-06-1815.3 - 17.40.0View
View All Cloudflare Options

Stock Volatility Analysis

When measuring the risk of Cloudflare stock, volatility is a critical metric. It indicates how dramatically Cloudflare's price swings over a specific time horizon. A stock with high volatility can produce outsized gains or losses compared to a low-volatility alternative.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Cloudflare 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.

Projected Return Density Against Market

Considering the 90-day investment horizon Cloudflare has a beta of 0.7979 . This indicates as returns on the market go up, Cloudflare's average returns are expected to increase less than the benchmark. However, during a bear market, the loss from holding Cloudflare is expected to be smaller as well.
Cloudflare carries exposure to broad market movements as well as company or sector-specific developments. While portfolio diversification can reduce asset-level risk, systematic volatility cannot be avoided. Standard deviation and beta quantify this exposure. For Cloudflare, recent data highlights a Downside Deviation of 4.05, a Mean Deviation of 2.71, and a Semi Deviation of 3.85.
Cloudflare has an alpha of 0.078, implying that it can generate a 0.078 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Density   
       Returns  
Cloudflare's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much Cloudflare's price typically deviates from the mean over a given period.

What Drives Cloudflare's Price Volatility?

Several factors can influence Cloudflare's market volatility:

Industry Dynamics

Sector-level events can directly affect Cloudflare's price stability. Regulatory changes, supply disruptions, or shifts in demand within Cloudflare's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Cloudflare.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for Cloudflare's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Cloudflare. During periods of economic expansion, Cloudflare's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

Cloudflare's Company-Specific Factors

Volatility can also stem from events unique to Cloudflare. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Cloudflare's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Cloudflare's share price.

Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Cloudflare is 1753.52. The daily returns are distributed with a variance of 14.74 and standard deviation of 3.84. The mean deviation of Cloudflare is currently at 2.77. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
0.08
β
Beta against Dow Jones0.80
σ
Overall volatility
3.84
Ir
Information ratio 0.02

Stock Return Volatility

Volatility for Cloudflare quantifies the day-to-day dispersion of stock returns around their historical average. The firm carries 3.8393% return volatility across the 90-day horizon. As a benchmark, Dow Jones Industrial has volatility of 0.8012% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ZSSNOW
NTESSNOW
ZSNTES
MSTRCDNS
MSTRSNOW
SNOWCDNS
  

High negative correlations

GLWZS
GLWNTES
GLWSNOW
GLWMSTR
GLWSNPS
GLWCDNS

Risk-Adjusted Indicators

Cloudflare Company may look attractive on headline returns alone, but deeper analysis often tells a different story. A thorough review of Cloudflare's risk-adjusted indicators provides a clearer picture of whether returns are being earned efficiently. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for Cloudflare measures return dispersion and uncertainty over time. Standard deviation provides a baseline measure of variability magnitude. Cloudflare has a market cap of 72.98 B, ROE of -8.16%.

This section for Cloudflare is built from periodic company reporting and market reference feeds, with harmonization applied to align reporting definitions. Professional analyst research is incorporated when coverage is available. Values may update on different source schedules. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Raphi Shpitalnik - Junior Member of Macroaxis Editorial Board
Last reviewed on February 22nd, 2026

Cloudflare Investment Opportunity

Recent data suggests that Cloudflare is meaningfully more volatile than Dow Jones Industrial, by roughly a 4.8x factor. Used properly, this comparison helps investors decide whether the extra volatility is strategic or simply uncompensated risk.You can use Cloudflare to enhance the returns of your portfolios. This short-horizon strategy note focuses on what the latest move may imply for immediate trading context. It is intended to separate routine noise from more speculative bursts in price action. an unexpected upward trend. Watch out for market signals. Check odds of Cloudflare to be traded at $260.99 in 90 days.
Excellent diversification
NET currently posts a -0.63 correlation with DJI, indicating a Excellent diversification relationship for the active sample. This matters because lower overlap can improve diversification, while higher overlap leaves more of the same risk inside the portfolio.

Cloudflare Additional Risk Indicators

Looking at additional risk metrics for Cloudflare helps investors judge how the position may behave under different market and portfolio conditions. This is most useful when investors want to understand whether the current opportunity is being paid for with reasonable risk.

Cloudflare Suggested Diversification Pairs

Using Cloudflare in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
Risk reduction through pair trading is real but has limits - not every type of exposure can be offset by a second leg. Cloudflare's exposure to overall market risk stays intact regardless of pairing. The value of a second leg lies in reducing Cloudflare's idiosyncratic risk - the part that comes from company-level events rather than macro conditions.

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