SOFI (SOFI)
Daily ERM3 factor decomposition: how much of SOFI's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $17.64
- Market cap
- $22.6B
- 23-day vol
- 43.6%
- Sector proxy
- XLF
- Subsector proxy
- IYG
Risk DNA
35% of SOFI's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 32.0%Sector 0.5%Subsector 2.1%Stock-specific 65.5%
ETF hedge ratios
Dollars of ETF to short per $1 of SOFI held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLF) | Subsector (IYG) | Explained risk |
|---|---|---|---|---|
| L1 | $-2.32 | — | — | 32.0% |
| L2 | $-1.92 | $-0.61 | — | 32.4% |
| L3 | $-1.57 | $0.67 | $-1.54 | 34.5% |
Data as of July 22, 2026. Updated daily from the ERM3 pipeline.
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