ETSY (ETSY)
Daily ERM3 factor decomposition: how much of ETSY's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $83.84
- Market cap
- $8.0B
- 23-day vol
- 45.4%
- Sector proxy
- XLY
- Subsector proxy
- XRT
Risk DNA
17% of ETSY's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 6.3%Sector 1.0%Subsector 9.5%Stock-specific 83.3%
ETF hedge ratios
Dollars of ETF to short per $1 of ETSY held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLY) | Subsector (XRT) | Explained risk |
|---|---|---|---|---|
| L1 | $-1.09 | — | — | 6.3% |
| L2 | $-0.84 | $-0.21 | — | 7.3% |
| L3 | $-0.81 | $0.63 | $-1.10 | 16.7% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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