Is it possible to hedge the alpha factor at factor construction level? Or should I just rely on the optimizer to help me attain the required beta?
I get the following result from alphalens. In the above question, I am referring to row 2.
Ann. alpha 0.064 0.066
beta -0.272 -0.282
Mean Period Wise Return Top Quantile (bps) 8.316 8.445
Mean Period Wise Return Bottom Quantile (bps) -9.601 -9.779
Mean Period Wise Spread (bps) 17.917 18.493