So i did a simple volatility-based weighting and combined that with a 100-day price change (so for example, the more volatile an equity is and if it has suffered a loss compared to its price 100 days ago, you would short the equity but as a small fraction of your portolio)
Is this hedged? Need to learn more... physics is not like finance I'll just say that.
Hi Benny,
Welcome to Quantopian!
One suggestion for you would be to dig into some of our quant finance lectures, specifically lectures 19 and 20 on beta hedging.
Good luck!
Josh
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In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.
