Risk decomposition
PEP
Market → sector → subsector → α-residual · 2026-05-01 → 2026-10-21
Market
-1.5%
Sector
+4.8%
Subsector
-0.3%
α residual
-15.5%
Stock
-12.5%
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