Exxon Mobil Corporation (XOM)
Daily ERM3 factor decomposition: how much of XOM's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $174.68
- Market cap
- $724.0B
- 23-day vol
- 24.4%
- Sector proxy
- XLE
- Subsector proxy
- IYE
Risk DNA
80% of XOM's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
XOM carries 20% stock-specific risk against a peer average of 67% — less of what happens here is specific to this name than is typical for its cohort.
Subsector (-0.3%) covaried negatively with XOM 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 XOM held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLE) | Subsector (IYE) | Explained risk |
|---|---|---|---|---|
| L1 | $0.84 | — | — | 8.2% |
| L2 | $0.58 | $-0.88 | — | 79.9% |
| L3 | $0.58 | $-0.19 | $-0.80 | 79.6% |
Data as of October 16, 2026. Updated daily from the ERM3 pipeline.
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