UNH (UNH)

Daily ERM3 factor decomposition: how much of UNH's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.

Price
$405.55
Market cap
$369.1B
23-day vol
27.5%
Sector proxy
XLV
Subsector proxy
IHF

Risk DNA

65% of UNH's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.

Market 2.5%Sector 13.2%Subsector 49.7%Stock-specific 34.6%

ETF hedge ratios

Dollars of ETF to short per $1 of UNH held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.

LevelMarket (SPY)Sector (XLV)Subsector (IHF)Explained risk
L1$-0.822.5%
L2$-0.55$-0.5915.7%
L3$-0.35$0.23$-1.1865.4%

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

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