RDDT (RDDT)
Daily ERM3 factor decomposition: how much of RDDT's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $179.23
- Market cap
- $34.5B
- 23-day vol
- 72.6%
- Sector proxy
- XLC
- Subsector proxy
- FDN
Risk DNA
27% of RDDT's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 11.7%Sector 5.2%Subsector 10.5%Stock-specific 72.7%
ETF hedge ratios
Dollars of ETF to short per $1 of RDDT held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLC) | Subsector (FDN) | Explained risk |
|---|---|---|---|---|
| L1 | $-2.20 | — | — | 11.7% |
| L2 | $-1.53 | $-0.95 | — | 16.9% |
| L3 | $-0.08 | $-0.45 | $-1.50 | 27.3% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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