fbpx

How beta can be used to help hedge out risk on your portfolio to enhance your risk management?

(Last Updated On: September 18, 2014)

How beta can be used to help hedge out risk on your portfolio to enhance your risk management?

You need to calculate your beta from data not to use other sources which may use 3 year length of time. The beta over 5 years but does not change a lot. Short term beta is more useful as in 6–12 months for rolling beta. Beta is used to hedge out market risk as much as possible.

If you are long X dollars cash for short x dollar, if your betas are wildly different and high, your cash position will not work very well so this will hedge out your market risk. This can helps assess your capital risk each day on your portfolio.

Join my FREE newsletter to find out how this can be applied to your portfolio

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
Don't miss out!
Get my TRADE LIKE A BOSS 2 PDF Books

You will received instantly the download links.

Invalid email address
Give it a try. You can unsubscribe at any time.

NOTE!

Check NEW site on stock forex and ETF analysis and automation

Scroll to Top