Mastercard Incorporated Class A (MA)
Daily ERM3 factor decomposition: how much of MA's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $562.95
- Market cap
- $497.4B
- 23-day vol
- 24.0%
- Sector proxy
- XLF
- Subsector proxy
- IYG
Risk DNA
57% of MA's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
MA carries 42% stock-specific risk against a peer average of 74% — less of what happens here is specific to this name than is typical for its cohort.
Sector (-1.8%) covaried negatively with MA 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 MA held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLF) | Subsector (IYG) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.28 | — | — | 3.7% |
| L2 | $-0.38 | $0.11 | — | 1.9% |
| L3 | $0.10 | $3.06 | $-3.48 | 57.4% |
Data as of August 8, 2026. Updated daily from the ERM3 pipeline.
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