Your company also owns a $10,000,000 stock portfolio. Your boss wants to hedge half of the portfolio using e-mini S&P 500 futures and puts you in charge of doing it.
The returns for the last 6 months for the portfolio and the S&P 500 have been:
Month Portfolio S&P 500
1 8% 4%
2 4% 1%
3 -12% -3%
4 8% 2%
5 0% 0%
6 -4% -2.5%
What do you do?