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.

LevelMarket (SPY)Sector (XLC)Subsector (FDN)Explained risk
L1$-1.4625.2%
L2$-0.65$-1.1138.6%
L3$-0.14$-1.00$-0.4841.6%

Data as of June 12, 2026. Updated daily from the ERM3 pipeline.

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