META (META)
Daily ERM3 factor decomposition: how much of META's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $568.43
- Market cap
- $1.46T
- 23-day vol
- 34.9%
- Sector proxy
- XLC
- Subsector proxy
- FDN
Risk DNA
42% of META's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 25.2%Sector 13.4%Subsector 3.0%Stock-specific 58.4%
ETF hedge ratios
Dollars of ETF to short per $1 of META held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLC) | Subsector (FDN) | Explained risk |
|---|---|---|---|---|
| L1 | $-1.46 | — | — | 25.2% |
| L2 | $-0.65 | $-1.11 | — | 38.6% |
| L3 | $-0.14 | $-1.00 | $-0.48 | 41.6% |
Data as of June 12, 2026. Updated daily from the ERM3 pipeline.
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