Dynamic Hedging

The Dynamic Hedging Package allows you to hedge your portfolio against market risk and create “market-neutral” portfolios.

Dynamic Hedging is a risk management technique that can be used to reduce the inherent risk associated with holding stock and ETF positions overnight.
Dynamic hedging also minimizes the market risk that portfolios are exposed to when the markets are closed (nights, weekends, and holidays).

Dynamic Hedging entails holding an opposite position in a market index in the portfolio. Dynamic Hedging can be implemented at 50% or 100%. For example,
if the portfolio is currently net 60% long, then a 50% hedge would call for a position of 30% short an index (for example the Russell or S&P 500).