Every Position Has a Benchmark. So Every Portfolio Does Too.
RiskModels decomposes stocks, funds, and portfolios into market, sector, subsector, and residual bets — so benchmark risk becomes measurable instead of assumed.
Live risk decomposition
Four bets: market · sector · subsector · residual.
Risk decomposition
MSFT
variance share by layer- Marketno ETF—
- Sectorno ETF—
- Subsectorno ETF—
- Residualno ETF—
This is one /decompose call — an app or agent gets the same object.
The APIRead the residual bar first — it’s the share of risk that’s genuinely stock-specific, the part broad ETF hedges can’t replace.
σ_p² = β_p²σ_m² + σ_ε² — rentable benchmark risk plus owned residual.
For AI-native finance
An assistant shouldn’t invent portfolio-risk commentary from text memory — it should call a structured, time-stamped model it can cite. The same auditable decomposition is exposed as agent-ready objects: four risk layers, ETF hedge ratios, and interpretable context. See the agent interface →
What it measures
- Market
- Broad SPY beta — the rentable core of the position.
- Sector
- GICS sector exposure incremental to the market.
- Subsector
- The granular industry tilt that style labels miss.
- Residual
- Idiosyncratic, stock-specific risk that can’t be replicated with broad ETF exposure.
Selected research · One Position, Four Bets
- Part 1Read →
One Position, Four Bets
Turning conviction into tradeable risk: same label, different bets across AAPL/NVDA, XOM/KMI, and MAG7.
- Part 2Read →
Risk Structure in 13F Filings
Market, thematic, and stock-specific risk across Buffett, Ackman, Lone Pine, Tiger Global, and Baupost — and what survives the 45-day filing lag.
- Part 3Soon
Orthogonal Decomposition
Stripping market and sector noise to isolate subsector risk.
Exhibits · live benchmark artifacts
refreshed each 13F / N-PORT cycle · next ≈ Q2 2026