The term delta-hedging refers to the manipulation of risk to help fit a desired tolerance. We hedge risk often not just on a trade level but on a portfolio level as well. By beta weighting positions, relative risk can be compared, and indicate possible adjustments on a portfolio level.
Examine risk of individual positions to determine how well they “Fit” the portfolio.
Make adjustments with greater precision to size and weight of a position.
Check out today’s show to learn more!
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