NVDA (NVDA)
Daily ERM3 factor decomposition: how much of NVDA's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $204.87
- Market cap
- $5.01T
- 23-day vol
- 45.4%
- Sector proxy
- XLK
- Subsector proxy
- SMH
Risk DNA
54% of NVDA's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 39.7%Sector 15.2%Subsector 0.0%Stock-specific 45.1%
ETF hedge ratios
Dollars of ETF to short per $1 of NVDA held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLK) | Subsector (SMH) | Explained risk |
|---|---|---|---|---|
| L1 | $-1.77 | — | — | 40.1% |
| L2 | $-0.01 | $-1.10 | — | 55.5% |
| L3 | $-0.26 | $-0.52 | $-0.31 | 54.4% |
Data as of June 12, 2026. Updated daily from the ERM3 pipeline.
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