Risk decomposition
BAC
Market → sector → subsector → α-residual · 2026-03-16 → 2026-09-03
Market
+14.2%
Sector
+8.8%
Subsector
-0.1%
α residual
+12.1%
Stock
+34.9%
Every position carries the market, its sector, and its subsector before any stock-specific move. The waterfall splits BAC'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=BAC&years=1