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A beta hedge sells index futures with notional equal to the portfolio's beta-adjusted value, so market moves offset. Because contracts are indivisible, rounding leaves a residual exposure that should be reported rather than ignored.
Beta hedge
Contracts = portfolio value × beta / (futures price × multiplier)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
A high-beta portfolio moves more than the index, so it needs proportionally more index futures to neutralise.
Basis risk and specific risk. The hedge removes market direction, not stock selection or tracking differences.