> ## Documentation Index
> Fetch the complete documentation index at: https://docs.secapi.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# POST /v1/portfolio/hedge

> Return bounded benchmark-instrument factor hedge candidates for a portfolio with compact residual exposure and trust metadata

Return bounded benchmark-instrument factor hedge candidates for a portfolio with compact residual exposure and trust metadata

<Info>
  Audience: application and coding agent.
</Info>

## Canonical metadata

* `requestId`
* `traceparent`

## Example request

<RequestExample>
  ```bash theme={null}
  curl -X POST \
    -H "x-api-key: $SECAPI_API_KEY" \
    -H "secapi-version: 2026-03-19" \
    -H "content-type: application/json" \
    -d '{"country":"US","lookback":"12m","category":"style","keys":["VALUE","MOMENTUM","QUALITY"],"objective":"factor_neutral","mode":"compact","constraints":{"maxHedges":3,"maxPositionWeight":0.08,"maxTotalHedgeWeight":0.2,"maxSectorWeight":0.35,"hedgeIntensity":0.75,"longOnly":false,"allowedInstrumentTypes":["etf"],"customUniverse":["QUAL","MTUM","VLUE","USMV"],"targetExposures":{"VALUE":0,"MOMENTUM":0.1},"minConfidence":"medium","minLiquidityUsd":10000000,"excludedSectors":[]},"holdings":[{"symbol":"AAPL","weight":0.35},{"symbol":"MSFT","weight":0.3},{"symbol":"NVDA","weight":0.2},{"symbol":"JPM","weight":0.15}]}' \
    "https://api.secapi.ai/v1/portfolio/hedge?response_mode=compact&include=trust"
  ```
</RequestExample>

## Example response

<ResponseExample>
  ```json theme={null}
  {
    "object": "portfolio_hedge",
    "id": "portfolio_hedge:growth-quality-core:2026-06-09",
    "analysisId": "portfolio_analysis:growth-quality-core:2026-06-09",
    "asOf": "2026-06-09T22:15:00.000Z",
    "country": "US",
    "lookback": "12m",
    "objective": "factor_neutral",
    "mode": "compact",
    "constraints": {
      "maxHedges": 3,
      "maxPositionWeight": 0.08,
      "maxTotalHedgeWeight": 0.2,
      "maxSectorWeight": 0.35,
      "hedgeIntensity": 0.75,
      "longOnly": false,
      "allowedInstrumentTypes": [
        "etf"
      ],
      "customUniverse": [
        "QUAL",
        "MTUM",
        "VLUE",
        "USMV"
      ],
      "targetExposures": {
        "VALUE": 0,
        "MOMENTUM": 0.1
      },
      "minConfidence": "medium",
      "minLiquidityUsd": 10000000,
      "excludedSectors": []
    },
    "holdings": [
      {
        "symbol": "AAPL",
        "weight": 0.35
      },
      {
        "symbol": "MSFT",
        "weight": 0.3
      },
      {
        "symbol": "NVDA",
        "weight": 0.2
      },
      {
        "symbol": "JPM",
        "weight": 0.15
      }
    ],
    "targetExposures": [
      {
        "object": "portfolio_hedge_target_exposure",
        "factorKey": "VALUE",
        "factorName": "Value",
        "factorCategory": "style",
        "beta": -0.42,
        "targetExposureDelta": 0.42,
        "proposedExposureDelta": 0.18,
        "residualBeta": -0.24,
        "hedged": true,
        "skipReason": null
      }
    ],
    "hedges": [
      {
        "object": "portfolio_hedge_candidate",
        "rank": 1,
        "factorKey": "VALUE",
        "factorName": "Value",
        "factorCategory": "style",
        "symbol": "VLUE",
        "instrumentType": "etf",
        "action": "long",
        "recommendedWeight": 0.08,
        "targetExposureDelta": 0.42,
        "expectedExposureDelta": {
          "VALUE": 0.18
        },
        "residualBeta": -0.24,
        "constraintStatus": "ok",
        "constraintsApplied": [
          "maxPositionWeight"
        ],
        "liquidityUsd": 145000000,
        "estimatedCostBps": 4,
        "sectorKey": null,
        "rationale": "Adds liquid value exposure without increasing single-name concentration.",
        "confidence": "medium"
      }
    ],
    "residualExposure": {
      "VALUE": -0.24,
      "MOMENTUM": 0.37
    },
    "exposures": [
      {
        "object": "factor_exposure",
        "id": "factor_exposure:AAPL:VALUE:2026-06-09",
        "subjectType": "security",
        "subjectKey": "AAPL",
        "factorKey": "VALUE",
        "beta": -0.42,
        "percentile": 18.2,
        "confidence": "high",
        "modelName": "secapi_stock_basket_factor_model_v1",
        "asOf": "2026-06-09T22:15:00.000Z",
        "responseMode": "compact",
        "expansionHints": [
          "Use include=diagnostics or response_mode=standard for regression diagnostics such as rSquared, tStat, and observationCount."
        ]
      }
    ],
    "optimizationNotes": [
      "Hedge candidates are bounded by liquidity and max total hedge weight."
    ],
    "factorNeutralPlan": [
      "Add VLUE at 8% funded pro rata from overweight growth names."
    ],
    "summaryMd": "The hedge candidate reduces negative VALUE beta while keeping total hedge weight under 20%.",
    "disclosures": [
      "Research scenario only. Not investment advice or a recommendation to trade."
    ],
    "responseMode": "compact",
    "dataAsOf": "2026-06-09",
    "freshnessStatus": "fresh",
    "methodologyVersion": "secapi_portfolio_hedge_v1",
    "materializationVersion": "2026-06-09",
    "provenance": {
      "source": "secapi_factor_pipeline",
      "sourceLabel": "SecAPI factor pipeline",
      "accessionNumber": null,
      "filingUrl": "https://docs.secapi.ai/factors/methodology",
      "acceptedAt": null,
      "retrievedAt": "2026-06-09T22:15:00.000Z",
      "parserVersion": "secapi-factor-pipeline"
    },
    "freshness": {
      "status": "fresh",
      "asOf": "2026-06-09T22:15:00.000Z",
      "sourcePublishedAt": "2026-06-09T21:30:00.000Z",
      "lagMs": 2700000
    },
    "materialization": {
      "parserVersion": "secapi-factor-pipeline",
      "materializationVersion": "2026-06-09"
    },
    "sourceRights": {
      "source": "secapi_owned_factor_pipeline",
      "sourceLabel": "SecAPI factor pipeline",
      "posture": "public_safe",
      "publicAvailability": "public",
      "contractStatus": "approved",
      "restrictions": [],
      "notes": "SecAPI-owned derived factor data."
    },
    "methodology": {
      "id": "secapi_factor_returns",
      "version": "v1",
      "summary": "SecAPI-owned daily factor returns, exposures, and portfolio analytics built for agent and API workflows.",
      "confidence": "high",
      "launchState": "beta",
      "inputs": [
        "secapi_factor_returns",
        "secapi_factor_exposures",
        "market_calendar"
      ],
      "validation": {
        "launchHistoryFloor": "2015-01-01",
        "marketCalendarAware": true
      }
    },
    "revision": {
      "sourcePublishedAt": "2026-06-09T21:30:00.000Z",
      "retrievedAt": "2026-06-09T22:15:00.000Z",
      "vintageId": "2026-06-09",
      "revisedFrom": null
    },
    "degradedState": null,
    "requestId": "req_2ZK8Q1W9F4M6P7R3",
    "traceparent": "00-4bf92f3577b34da6a3ce929d0e0e4736-00f067aa0ba902b7-01"
  }
  ```
</ResponseExample>

## Give this prompt to your agent

<Prompt>
  Use SEC API POST /v1/portfolio/hedge for bounded benchmark-instrument hedge candidates. Preserve `targetExposures`, `hedges`, `residualExposure`, `constraints`, `optimizationNotes`, `factorNeutralPlan`, `summaryMd`, `freshness`, `methodology`, `requestId`, and `traceparent`. Treat the output as an analytical scenario, not a trade instruction.
</Prompt>

## Failure posture

* treat non-2xx responses as contract-aware failures, not free-form errors
* preserve `requestId` and `traceparent` in logs and downstream reports
* if provenance or freshness metadata is present, return it unchanged so trust is not lost in the handoff