BE: factor decomposition (Clean Energy)

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

Return decomposition (log-return points, additive)

Market+85.93ppSector (excess)+57.95ppRate (excess)+3.05ppIdiosyncratic+31.38pp

Factor betas

Beta · Market (SPY)+4.26
Beta · Sector-excess (ICLN)+3.05
Beta · Rate-excess (TLT)-0.85
R²0.61
Window2025-08-22 → 2026-09-24 (273 trading days)

Read

R² is 0.61: a reasonably reliable fit; the betas and the split below are worth reading at face value.

Of BE's +178.3pp move over this window, +31.4pp (18% of the total magnitude) is idiosyncratic, not explained by riding market, sector, or rate moves. The rest (+146.9pp) came from systematic exposure: market +85.9pp, sector +57.9pp, rate +3.0pp.

Generated 2026-09-25 07:03 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.