International Business Machines Corporation (IBM)
Daily ERM3 factor decomposition: how much of IBM's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $252.11
- Market cap
- $240.2B
- 23-day vol
- 26.6%
- Sector proxy
- XLK
- Subsector proxy
- RSPT
Risk DNA
10% of IBM's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
IBM carries 90% stock-specific risk against a peer average of 80% — more of what happens here is specific to this name than is typical for its cohort.
Sector (-0.3%) covaried negatively with IBM over this window, offsetting its variance rather than adding to it. Clamped to 0% for the bar and the remaining layers renormalized, so the percentages above sum to 100.
ETF hedge ratios
Dollars of ETF to short per $1 of IBM held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLK) | Subsector (RSPT) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.70 | — | — | 5.0% |
| L2 | $-1.37 | $0.38 | — | 4.7% |
| L3 | $-1.68 | $1.44 | $-0.92 | 10.1% |
Data as of October 23, 2026. Updated daily from the ERM3 pipeline.
13F filers holding IBM
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