Click "+ New Experiment" to create a new hedge experiment.

To create a hedge basket, select the hedge option. To replicate the performance of a stock(s), select the mimic option.

Once you've added all of the stocks you want to hedge, click "Next".

Select where you want your hedges to come from by searching for a stock universe. Within a universe, you can either choose Universe Only or a model. When you use a model, the machine will incorporate signals used in stock rankings to construct your hedge basket. The benefit of incorporating signals is if you have a good model, your basket can have greater outperformance.

Models are grouped by universes, which you can see via the toggle.

Models are grouped by universes, which you can use to 

To remove a universe or model, click the "X" icon.

To add additional universes and models, click on the universe you want. From there, you can select all the associated models.

QQQ Membership (Nasdaq)
100% target intersection

In this last step, you can add Baseline Portfolios to benchmark your hedge baskets and add or adjust scenarios to test. 

To create a new benchmark, click "+ Add Baseline".

Click "+ Add Holdings" to add a stock to your baseline portfolio. Set the weight as "1" to long the stock or "-1" to short. 

By default, we provide several hedge scenarios that would be good to test.

To edit one of our hedge scenarios, click the gear icon.

You can see all of the scenario settings you can adjust for your scenario. See the section "Hedge Baskets Scenario Settings" to learn more about the different settings. 

Once you've added all of your settings, click "Save".

We are generating a hedge basket for every universe/model within a scenario. For example, if you have 3 universes/models and 5 scenarios, you will have 15 hedge baskets in the end.

To delete a scenario, just click the "X" icon and confirm "Delete".

To add a scenario, "+ Add Scenario".
Add a descriptive name for your scenario.

Add a descriptive name for your scenario.

When you're finished, click "Calculate Baskets" to run your experiment.

Your experiment can run from a few minutes to 10+ minutes depending on its complexity. From the Hedge Baskets homepage, you will see a list of all of your experiments.

 Under Status, you can see how many baskets within your experiment have been calculated. 

Click on your experiment to see your results. Go to "Evaluating Hedge Basket Results" section to see how to interpret your experiment.

Feature Guide - Hedge Baskets