ANET — factor decomposition (Technology)

How much of ANET'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+43.92ppSector (excess)-0.00ppRate (excess)-0.00ppIdiosyncratic+15.66pp

Factor betas

Beta · Market (SPY)+2.14
Beta · Sector-excess (XLK)+1.39
Beta · Rate-excess (TLT)+0.03
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 ANET's +59.6pp move over this window, +15.7pp (26% of the total magnitude) is idiosyncratic — not explained by riding market, sector, or rate moves. The rest (+43.9pp) came from systematic exposure: market +43.9pp, 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.