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
- $204.80
- Market cap
- $161.4B
- 23-day vol
- 27.9%
- Sector proxy
- XLI
- Subsector proxy
- PPA
Risk DNA
36% of BA's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 19.8%Sector 5.6%Subsector 11.1%Stock-specific 63.5%
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 | — | — | 19.8% |
| L2 | $-0.85 | $-0.55 | — | 25.4% |
| L3 | $-0.77 | $0.26 | $-0.86 | 36.5% |
Data as of July 22, 2026. Updated daily from the ERM3 pipeline.
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