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RiskModels / Stocks / CRSP

CRSP (CRSP)

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

Price
$46.73
Market cap
$4.5B
23-day vol
51.5%
Sector proxy
XLV
Subsector proxy
XBI

Risk DNA

33% of CRSP's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.

Market 13.0%Sector 4.6%Subsector 15.0%Stock-specific 67.4%

ETF hedge ratios

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

LevelMarket (SPY)Sector (XLV)Subsector (XBI)Explained risk
L1$-2.06——13.0%
L2$-1.80$-0.82—17.6%
L3$-0.94$-0.26$-1.0432.6%

Data as of July 28, 2026. Updated daily from the ERM3 pipeline.

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