Hedging Systematic Risk - Nasdaq Composite

Discussion in 'Trading' started by Darth-trader, Apr 7, 2016.

  1. OptionGuru

    OptionGuru


    I don't follow you.:cool:


    :)
     
    #11     Apr 8, 2016
  2. OptionGuru

    OptionGuru



    I think you are back to square one with the QQQ. Nasdaq and QQQ practically trade identically.



    :)
     
    #12     Apr 8, 2016
  3. If your portfolio has a beta of say 1.5, how does reducing your portfolio size neutralise your beta. It doesn't, you still have the same exposure to the market. How much you allocate in terms of size to your hedge and/or your portfolio is a different argument. Let's assume 1:1 for simplicity, sorry I probably should have been clearer.
     
    #13     Apr 8, 2016
  4. Indeed. So question now as I have little experience with ETFs, whats the pros and cons of going short QQQ ETF vs going long the inverse on QQQ (PSQ)?
     
    #14     Apr 8, 2016