AMZN (AMZN)

Daily ERM3 factor decomposition: how much of AMZN's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.

Price
$241.51
Market cap
$2.62T
23-day vol
27.2%
Sector proxy
XLY
Subsector proxy
XRT

Risk DNA

48% of AMZN's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.

Market 33.2%Sector 12.8%Subsector 2.3%Stock-specific 51.7%

ETF hedge ratios

Dollars of ETF to short per $1 of AMZN held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.

LevelMarket (SPY)Sector (XLY)Subsector (XRT)Explained risk
L1$-1.4033.2%
L2$-0.37$-0.8646.0%
L3$-0.42$-1.11$0.3348.3%

Data as of June 12, 2026. Updated daily from the ERM3 pipeline.

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