POWERED BY SLICEMATRIX-IO

THE NEXT GENERATION IN MACHINE INTELLIGENCE

Reduce Volatility Risk        protect returns        Reduce Parameter Risk

WHAT IS IT?

One of the critical requirements that any good trader thinks about when developing their trading system is how to protect their downside risk, especially in today’s markets.
The Risk Hedger API has two main functions:

  1. get_hedges: Implements a powerful machine intelligent model to dynamically finds the best hedges for your security position.
  2. get_ratio: The Risk Hedger accurately calculates the Dynamic Hedge Ratio for a given securities pair

The Risk Hedger is powered by SliceMatrix-IO which is a next generation global machine intelligence platform as a service (PaaS).

Coverage

  • S&P 500
  • NASDAQ 100
  • DOW 30

    **Note we are expanding our coverage soon. Please join our mailing list for updates.

  • how does pricing work?

    The Risk Hedger Free Tier includes 100 free API Calls per month. After that it is $0.01 per API Call.

    Enterprise rates are available for high-volume use cases, contact sales@slicematrix.com for more information about enterprise packages.

    Optimize your Cost

    Scenario 1:
    Every trading day you make 5 API calls to get_ratio. Assuming there are about 20 trading days in a month that is 100 calls in a month.

    Since the free tier is set to 100 calls, in this example the total cost is (100 Calls - 100 Free Calls ) x $0.01 per Call = $0

    Scenario 2:
    You have a list of 100 pairs for which you want to generate hedge ratios on a daily basis.
    Assuming there are about 20 trading days in a month that amounts to 2000 calls per month.
    In this case your cost would be ( 2000 Calls - 100 Free Calls ) x $0.01 per Call = 1900 Calls x $0.01 per Call = $19.00

    Scenario 3:
    In this scenario you are long a portfolio of 300 stock symbols you wish to hedge. For each stock, you make a call once a day to 'get_hedges' to get the top hedges for that symbol. These are stocks that best minimize the directional risk of the target symbol.

    Then you select the top 3 hedges and get the current hedge ratio and use them to reduce the directional risk to your portfolio.

    Assuming there are about 20 trading days in a month...
    Calls to get_hedges = 20 x 300 = 6000 Calls to get_ratio = 20 x 300 x 3 = 18000

    Total calls = 24000

    Thus the total cost is ( 24000 Calls - 100 Free Calls ) x $0.01 per Call = 23900 Calls x $0.01 per Call = $239


    HOW DOES IT WORK?

    The Risk Hedger is delivered via an API. Users can build trading using our open source Python SDK. The Python client can be simply install using pip:

    pip install risk_hedger
     

    Once the Python client has been installed then simply call the 'get_ratio' function and enter the securities that you want to identify the hedge ratios.

    import risk_hedger
    
    io = risk_hedger.HedgeIO(api_key)
    
    io.get_ratio(base = "AAPL", hedge = "GOOG")

    {u'hedge_ratio': 0.3433113731632244}

    Call Risk Hedger's 'io.get_hedges' function which will provide a list of the closes securities to the target ticker based on similarities of price behavior over time.

    io.get_hedges("A")
    *Hedges:*
    TMO   0.134141
    PKI   0.161531
    WAT   0.177464
    ITW   0.177488
    SWK   0.179677
    RSG   0.220079
    ADI   0.220296
    MSFT  0.220570
    CVX   0.220989
    BBT   0.221543