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
$16.67
Market cap
$22.4B
23-day vol
60.3%
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 31.3%Sector 0.3%Subsector 3.1%Stock-specific 65.3%

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.

LevelMarket (SPY)Sector (XLF)Subsector (IYG)Explained risk
L1$-2.2931.3%
L2$-1.74$-0.7331.6%
L3$-1.34$1.18$-2.1234.7%

Data as of June 12, 2026. Updated daily from the ERM3 pipeline.

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