XYZ (XYZ)
Daily ERM3 factor decomposition: how much of XYZ's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $81.24
- Market cap
- $48.4B
- 23-day vol
- 37.9%
- Sector proxy
- XLK
- Subsector proxy
- IGV
Risk DNA
32% of XYZ's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 25.3%Sector 0.0%Subsector 8.0%Stock-specific 66.7%
ETF hedge ratios
Dollars of ETF to short per $1 of XYZ held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLK) | Subsector (IGV) | Explained risk |
|---|---|---|---|---|
| L1 | $-2.02 | — | — | 25.7% |
| L2 | $-2.01 | $-0.01 | — | 24.2% |
| L3 | $-2.04 | $0.34 | $-0.48 | 32.2% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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