Steps for the project
- • Let the user choose stocks from the stock universe
- • Calculate returns for each of them and sum them up with equal weights
- • Conduct a regression between the equally weighted stocks and the returns of futures
- • Specify percentage of hedge required, i.e., 10,25,50,75, or 100% hedge.
- • Add Hedge cost: use 5% margin multiplier for futures.
- • Conducting a Beta hedge only
- • Giving a pictorial representation of the hedges