Netflix, Inc. (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
- $72.61
- Market cap
- $309.4B
- 23-day vol
- 31.2%
- Sector proxy
- XLC
- Subsector proxy
- GGME
Risk DNA
23% of NFLX's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
NFLX carries 77% stock-specific risk against a peer average of 91% — less of what happens here is specific to this name than is typical for its cohort.
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 | $-0.25 | — | — | 0.1% |
| L2 | $0.46 | $-1.05 | — | 15.0% |
| L3 | $0.86 | $-1.01 | $-0.33 | 23.2% |
Data as of October 16, 2026. Updated daily from the ERM3 pipeline.
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