PepsiCo, Inc. (PEP)
Daily ERM3 factor decomposition: how much of PEP's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $136.65
- Market cap
- $187.1B
- 23-day vol
- 16.2%
- Sector proxy
- XLP
- Subsector proxy
- PBJ
Risk DNA
48% of PEP's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
PEP carries 51% stock-specific risk against a peer average of 84% — less of what happens here is specific to this name than is typical for its cohort.
Market (-2.5%) covaried negatively with PEP 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 PEP held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLP) | Subsector (PBJ) | Explained risk |
|---|---|---|---|---|
| L1 | $0.28 | — | — | -2.5% |
| L2 | $0.21 | $-1.01 | — | 48.0% |
| L3 | $0.23 | $-0.93 | $-0.12 | 48.0% |
Data as of September 11, 2026. Updated daily from the ERM3 pipeline.
13F filers holding PEP
From the most recent quarterly 13F filings in our tracked filer universe, largest reported position first.
Browse every tracked 13F filer.
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