HD (HD)
Daily ERM3 factor decomposition: how much of HD's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $331.60
- Market cap
- $330.6B
- 23-day vol
- 32.2%
- Sector proxy
- XLY
- Subsector proxy
- XRT
Risk DNA
45% of HD's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 11.7%Sector 20.4%Subsector 12.7%Stock-specific 55.2%
ETF hedge ratios
Dollars of ETF to short per $1 of HD 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 | $-0.67 | — | — | 11.7% |
| L2 | $0.65 | $-1.12 | — | 32.1% |
| L3 | $0.67 | $-0.68 | $-0.58 | 44.8% |
Data as of July 22, 2026. Updated daily from the ERM3 pipeline.
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