SoFi Technologies Inc (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
- $14.61
- Market cap
- $18.7B
- 23-day vol
- 41.5%
- Sector proxy
- XLF
- Subsector proxy
- IYG
Risk DNA
37% of SOFI's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
SOFI carries 63% stock-specific risk against a peer average of 83% — less of what happens here is specific to this name than is typical for its cohort.
Subsector (-0.0%) covaried negatively with SOFI 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 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 | $-2.53 | — | — | 37.0% |
| L2 | $-2.32 | $-0.34 | — | 37.3% |
| L3 | $-2.25 | $-0.09 | $-0.31 | 37.2% |
Data as of October 24, 2026. Updated daily from the ERM3 pipeline.
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