LULU (LULU)
Daily ERM3 factor decomposition: how much of LULU's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $117.83
- Market cap
- $12.9B
- 23-day vol
- 36.7%
- Sector proxy
- XLY
- Subsector proxy
- XRT
Risk DNA
27% of LULU's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 14.1%Sector 7.9%Subsector 5.4%Stock-specific 72.6%
ETF hedge ratios
Dollars of ETF to short per $1 of LULU 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 | $-1.39 | — | — | 14.1% |
| L2 | $-0.09 | $-1.08 | — | 22.0% |
| L3 | $-0.07 | $-0.56 | $-0.68 | 27.4% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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