AON (AON)
Daily ERM3 factor decomposition: how much of AON's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $367.17
- Market cap
- $78.4B
- 23-day vol
- 32.6%
- Sector proxy
- XLF
- Subsector proxy
- KIE
Risk DNA
47% of AON's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 0.7%Sector 27.5%Subsector 18.3%Stock-specific 53.5%
ETF hedge ratios
Dollars of ETF to short per $1 of AON held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLF) | Subsector (KIE) | Explained risk |
|---|---|---|---|---|
| L1 | $0.31 | — | — | 0.7% |
| L2 | $0.93 | $-0.96 | — | 28.2% |
| L3 | $0.65 | $-0.39 | $-0.62 | 46.5% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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