LMT (LMT)
Daily ERM3 factor decomposition: how much of LMT's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $580.00
- Market cap
- $134.0B
- 23-day vol
- 43.4%
- Sector proxy
- XLI
- Subsector proxy
- PPA
Risk DNA
41% of LMT's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 0.0%Sector 8.4%Subsector 33.1%Stock-specific 58.5%
ETF hedge ratios
Dollars of ETF to short per $1 of LMT held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLI) | Subsector (PPA) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.07 | — | — | -0.0% |
| L2 | $0.73 | $-0.85 | — | 8.3% |
| L3 | $0.83 | $0.31 | $-1.25 | 41.5% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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