MCP For Claude Marketplace
Correlation Matrix Hedging

Correlation Matrix Hedging MCP Connector for Claude

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Calculate precise hedge ratios and risk profiles for correlated prediction markets.

3 tools Official Updated Oct 1, 2026 Official Vinkius Partner
More Details Connect to Claude

This MCP server provides deterministic tools for managing risk in correlated prediction market events. By using calculate_hedge_ratio, you can determine the exact beta needed to neutralize exposure between two assets. You can then use analyze_residual_risk to quantify the remaining idiosyncratic volatility, or calculate_trade_economics to evaluate the total cost, net expected value, and breakeven thresholds for your hedging strategy.

hedgingbetacorrelationriskpolymarket

3 tools expose this connector's capabilities to your AI agent.

analyze_residual_risk

Calculate the remaining idiosyncratic risk after applying a hedge

calculate_hedge_ratio

Calculate the hedge ratio (beta) and amount to neutralize exposure to a primary market

calculate_trade_economics

Calculate the total cost, net expected value, and breakeven threshold for a hedged trade

See how to talk to your AI agent using Correlation Matrix Hedging.

How much of ETH should I short to hedge a long position in BTC?

To neutralize your BTC exposure, you should short 0.85 units of ETH based on the current correlation and variance.

What is the remaining risk if I hedge my Polymarket position?

The residual variance for this hedged position is 0.042, representing an unhedged risk of 12%.

What is the breakeven for my hedging strategy?

The breakeven threshold for this trade is a 2.5% move in the idiosyncratic component of the primary market.

Use the `calculate_hedge_ratio` tool. It returns the specific `hedgeAmount` required to balance your primary position based on historical covariance and variance.

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