NFLX (NFLX)
Daily ERM3 factor decomposition: how much of NFLX's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $68.67
- Market cap
- $289.3B
- 23-day vol
- 44.5%
- Sector proxy
- XLC
- Subsector proxy
- GGME
Risk DNA
19% of NFLX's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 1.1%Sector 9.6%Subsector 8.5%Stock-specific 80.8%
ETF hedge ratios
Dollars of ETF to short per $1 of NFLX held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLC) | Subsector (GGME) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.18 | — | — | 1.1% |
| L2 | $0.42 | $-0.87 | — | 10.7% |
| L3 | $1.15 | $-0.90 | $-0.54 | 19.2% |
Data as of July 22, 2026. Updated daily from the ERM3 pipeline.
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