Add training workflow, datasets, and runbook

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+538 Part V: Index Options and Futures 
+pared to an equal dollar amount of stock. By selling the futures on an index - say, the 
+S&P 500- he removes the "market risk" from his portfolio (assuming the S&P 500 
+represents the "market"). What is left over after selling the futures is the "tracking 
+error." The discrepancy between the movement of the general stock market and any 
+individual portfolio is called "tracking error." This investor will still make money if his 
+portfolio outperforms the S&P 500, but he will find that he did not completely elim­
+inate his losses if his portfolio underperforms the index. Note that if the market goes 
+up, the investor will not make any money except for possible tracking error in his 
+favor. 
+REMOVING THE MARKET RISK FROM A PORTFOLIO 
+Stock portfolios are diverse in nature, not :p.ecessarily reflecting the composition of 
+the index underlying the futures contracts. The characteristics of the individual 
+stocks must be taken into account, for they may move more quickly or more slowly 
+than "the market." Let us spend a moment to define this characteristic of stocks that 
+is so important. 
+VOLATILITY VERSUS BETA 
+Recall that when we originally defined volatility for use in the Black-Scholes model, 
+we stated that Beta was not acceptable because it was strictly a measure of the cor­
+relation of a stock's performance to that of the stock market and was not a measure 
+of how fast the stock changed in price. Now we are concerned with how the stock's 
+movement relates to the market's as a whole. This is the Beta. 
+Unfortunately, Beta is not as readily available to the option strategist as is 
+volatility. Many option traders merely have to punch a button on their quote 
+machines and they can receive estimates of volatility. However, Beta estimates are 
+more difficult to obtain, and the ones that are available are often for very long time 
+periods, such as several years. These long-term Betas cannot be used for the pur­
+poses of the index hedging discussed in this chapter. Therefore, if one does not have 
+access to shorter-term Beta calculations, then he can approximate Beta by compar­
+ing an individual stock's volatility with the market's volatility. 
+Example: XYZ is a relatively volatile stock, having both an implied and historical 
+volatility of 36%. The overall stock market has a volatility of 15%. Therefore, one 
+could approximate the Beta of XYZ as 
+Beta approximation = 36/15 = 2.40