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
- $643.81
- Market cap
- $1.63T
- 23-day vol
- 54.1%
- Sector proxy
- XLC
- Subsector proxy
- FDN
Risk DNA
40% of META's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 23.6%Sector 14.3%Subsector 2.6%Stock-specific 59.5%
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 | $-1.44 | — | — | 23.6% |
| L2 | $-0.75 | $-1.01 | — | 37.9% |
| L3 | $-0.33 | $-0.89 | $-0.42 | 40.5% |
Data as of July 22, 2026. Updated daily from the ERM3 pipeline.
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