Microsoft Corporation (MSFT)
Daily ERM3 factor decomposition: how much of MSFT's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $492.44
- Market cap
- $3.66T
- 23-day vol
- 22.1%
- Sector proxy
- XLK
- Subsector proxy
- IGV
Risk DNA
37% of MSFT's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
MSFT carries 63% stock-specific risk against a peer average of 75% — less of what happens here is specific to this name than is typical for its cohort.
Sector (-0.5%) covaried negatively with MSFT 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 MSFT held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLK) | Subsector (IGV) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.83 | — | — | 13.6% |
| L2 | $-1.53 | $0.40 | — | 13.1% |
| L3 | $-1.46 | $0.73 | $-0.51 | 37.2% |
Data as of September 11, 2026. Updated daily from the ERM3 pipeline.
13F filers holding MSFT
From the most recent quarterly 13F filings in our tracked filer universe, largest reported position first.
- Pershing Square Capital15.3%
- Beacon Pointe Advisors4.5%
- Tiger Global Management4.1%
- Citadel Advisors2.9%
- Coatue Management2.8%
- Bridgewater Associates1.7%
- Soros Fund Management1.5%
- D. E. Shaw & Co.1.2%
Browse every tracked 13F filer.
Go deeper on MSFT
Ask the AI risk analyst for MSFT's full history, peer comparison, or how it changes your portfolio's risk.