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
- $329.82
- Market cap
- $328.8B
- 23-day vol
- 24.8%
- Sector proxy
- XLY
- Subsector proxy
- XRT
Risk DNA
43% of HD's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 14.8%Sector 17.0%Subsector 11.1%Stock-specific 57.1%
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 | $-0.77 | — | — | 14.8% |
| L2 | $0.50 | $-1.07 | — | 31.9% |
| L3 | $0.60 | $-0.61 | $-0.63 | 42.9% |
Data as of June 16, 2026. Updated daily from the ERM3 pipeline.
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