BA (BA)
Daily ERM3 factor decomposition: how much of BA's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $221.63
- Market cap
- $176.2B
- 23-day vol
- 41.7%
- Sector proxy
- XLI
- Subsector proxy
- PPA
Risk DNA
31% of BA's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 17.5%Sector 5.9%Subsector 7.4%Stock-specific 69.3%
ETF hedge ratios
Dollars of ETF to short per $1 of BA held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLI) | Subsector (PPA) | Explained risk |
|---|---|---|---|---|
| L1 | $-1.38 | — | — | 17.5% |
| L2 | $-0.73 | $-0.66 | — | 23.3% |
| L3 | $-0.73 | $0.10 | $-0.73 | 30.7% |
Data as of June 12, 2026. Updated daily from the ERM3 pipeline.
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