Webinar Series

Best Practices in Hedging

Single Stock Hedging Using SmartTradesTM

During this final webinar of our Best Practices in Hedging Series, we demonstrated how to construct smarter hedge baskets specifically designed to offset factor risk inherent in new or existing alpha-generating ideas. You will learn how to tailor a hedge for any single-security trade on the fly, allowing you to remove unwanted factor bets, target sector requirements, and/or maximize the alpha in your trade.

Topics covered include:

  • Create a new research topic
  • Create a smart trade experiment and trade setup
  • Select an appropriate universe of stocks
  • Iterate on rules and finalize your experiment
  • Adjust constraints - basket size, concentration rules, and specific factor targets.