Construct More Precise Hedge Baskets
Step 1
- On the home screen, click the + icon and select Research Topic; choose model(s), position(s) to hedge, and dates to run the simulation.
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/6390fd2bc6894f8c5dc915b2_Screen%20Shot%202022-12-07%20at%203.52.05%20PM.png)
Step 2
- Click ‘Add Experiment’ → ‘Smart Portfolio,’ define basket size as % of equity, and add a watchlist of names to construct the hedge + any constraints (i.e., eliminate high-squeeze names).
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/6390fa6efdc36fade4979c54_Screen%20Shot%202022-12-07%20at%203.40.47%20PM.png)
Step 3
- View results comparing original vs. hedged portfolios and customize further by adding liquidity and concentration constraints, target # of positions, factor exposure targets, and more.
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/6390facf021b6626596da564_Screen%20Shot%202022-12-07%20at%203.42.32%20PM.png)