TEM (TEM)
Daily ERM3 factor decomposition: how much of TEM's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $42.91
- Market cap
- $7.7B
- 23-day vol
- 73.5%
- Sector proxy
- XLV
- Subsector proxy
- IHI
Risk DNA
26% of TEM's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 22.7%Sector 3.5%Subsector 0.0%Stock-specific 73.8%
ETF hedge ratios
Dollars of ETF to short per $1 of TEM held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLV) | Subsector (IHI) | Explained risk |
|---|---|---|---|---|
| L1 | $-2.34 | — | — | 22.8% |
| L2 | $-2.13 | $-0.67 | — | 26.3% |
| L3 | $-1.98 | $-0.28 | $-0.54 | 26.0% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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