Kaiping is a complete hedging transaction. Simply put, if you think you are going to fall, sell and open a position. When you fall to your target position, you will buy and close your position. In other words, you have completed a hedging transaction.

This is a way to reduce business risks while still making profits from investment. General hedging is to conduct two transactions at the same time, both related to the market, in the opposite direction, with the same amount and breakeven.

Market correlation refers to the identity of market supply and demand that affects the prices of two commodities. If the relationship between supply and demand changes, it will affect the prices of two commodities at the same time, and the prices will change in the same direction.

Extended data

Hedging strategy

1. Arbitrage strategy: the most traditional hedging strategy.

Arbitrage strategies include convertible bond arbitrage, spot arbitrage of stock index futures, intertemporal arbitrage, ETF arbitrage and so on. , are the most traditional hedging strategies. Its essence is the application of "one price principle" in the pricing of financial products.

2. Annual Alpha Distribution of Index Enhanced Portfolio+Index Futures in Short-term Rolling

Statistical arbitrage performance based on 90 securities margin targets

3. Alpha strategy: Turn relative income into absolute income.

4. Neutral strategy: Starting from the dimension of eliminating β.

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