AMZN — factor decomposition (Technology)

How much of AMZN's move over the window is systematic (market, XLK sector-excess, rate-excess via TLT) vs. idiosyncratic (stock-specific).

Return decomposition (log-return points, additive)

Market+30.48ppSector (excess)+0.00ppRate (excess)+0.00ppIdiosyncratic-10.90pp

Factor betas

Beta · Market (SPY)+1.48
Beta · Sector-excess (XLK)-0.47
Beta · Rate-excess (TLT)-0.43
R²0.35
Window2025-06-30 → 2026-07-31 (274 trading days)

Read

R² is 0.35 — a reasonably reliable fit; the betas and the split below are worth reading at face value.

Of AMZN's +19.6pp move over this window, -10.9pp (56% of the total magnitude) is idiosyncratic — not explained by riding market, sector, or rate moves. The rest (+30.5pp) came from systematic exposure: market +30.5pp, sector +0.0pp, rate +0.0pp.

Generated 2026-08-01 18:46 UTC · factor-decomposition · simple 3-factor OLS (market, sector-excess, rate-excess, mutually orthogonalized) · log returns, additive over the window · a transparent estimate, not a commercial risk model — treat betas as directional, always check R² first.