HON (HON)
Daily ERM3 factor decomposition: how much of HON's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $247.05
- Market cap
- $78.8B
- 23-day vol
- 30.7%
- Sector proxy
- XLI
- Subsector proxy
- IYJ
Risk DNA
37% of HON's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 15.7%Sector 19.5%Subsector 1.3%Stock-specific 63.5%
ETF hedge ratios
Dollars of ETF to short per $1 of HON held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLI) | Subsector (IYJ) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.72 | — | — | 15.7% |
| L2 | $0.12 | $-0.90 | — | 35.2% |
| L3 | $0.20 | $-0.52 | $-0.46 | 36.5% |
Data as of July 29, 2026. Updated daily from the ERM3 pipeline.
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