Calculate Portfolio Hedging Ratios & Beta Coefficients
Determine the optimal hedge ratio for your portfolio using beta coefficients, correlation analysis, and risk metrics. Essential for portfolio risk management and investment protection strategies.
Common scenarios and their hedge ratio calculations
A low-risk portfolio with minimal market exposure
Portfolio Return: 8.5 %
Market Return: 10.2 %
Risk-Free Rate: 3.5 %
Portfolio Volatility: 8 %
Market Volatility: 12 %
Correlation: 0.65 ratio
High-risk portfolio requiring significant hedging
Portfolio Return: 18.5 %
Market Return: 10.2 %
Risk-Free Rate: 3.5 %
Portfolio Volatility: 25 %
Market Volatility: 12 %
Correlation: 0.92 ratio
Moderate risk portfolio with standard hedging needs
Portfolio Return: 12.5 %
Market Return: 10.2 %
Risk-Free Rate: 3.5 %
Portfolio Volatility: 15 %
Market Volatility: 12 %
Correlation: 0.85 ratio
Portfolio with negative market correlation
Portfolio Return: 6.5 %
Market Return: 10.2 %
Risk-Free Rate: 3.5 %
Portfolio Volatility: 12 %
Market Volatility: 12 %
Correlation: -0.75 ratio