AER (AER)
Daily ERM3 factor decomposition: how much of AER's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $151.40
- Market cap
- $25.3B
- 23-day vol
- 27.7%
- Sector proxy
- XLY
- Subsector proxy
- XRT
Risk DNA
13% of AER's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 14.3%Sector 0.2%Subsector 0.0%Stock-specific 85.5%
ETF hedge ratios
Dollars of ETF to short per $1 of AER held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLY) | Subsector (XRT) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.89 | — | — | 14.6% |
| L2 | $-0.32 | $-0.47 | — | 14.8% |
| L3 | $-0.32 | $-0.41 | $-0.08 | 13.3% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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