Risk decomposition
PEP
Market → sector → subsector → α-residual · 2026-03-16 → 2026-09-03
Market
-0.7%
Sector
+0.2%
Subsector
-0.1%
α residual
-9.5%
Stock
-10.1%
Every position carries the market, its sector, and its subsector before any stock-specific move. The waterfall splits PEP's realized return into those benchmark layers; the α residual is what the three hedge layers do not explain.
source: RiskModels — GET /ticker-returns?ticker=PEP&years=1