PANW: factor decomposition (Technology)

How much of PANW'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+24.31ppSector (excess)+27.52ppRate (excess)+0.35ppIdiosyncratic+23.28pp

Factor betas

Beta · Market (SPY)+1.21
Beta · Sector-excess (XLK)+0.66
Beta · Rate-excess (TLT)-0.10
R²0.15
Window2025-08-22 → 2026-09-24 (273 trading days)

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Moderate confidence: R² is 0.15; these three factors explain some but not most of PANW's day-to-day variance. Treat the split below as directional.

Of PANW's +75.5pp move over this window, +23.3pp (31% of the total magnitude) is idiosyncratic, not explained by riding market, sector, or rate moves. The rest (+52.2pp) came from systematic exposure: market +24.3pp, sector +27.5pp, rate +0.4pp.

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.