FIT Index
With ModelRoute you can seamlessly and intelligently formulate an Index option order whose price performance characteristics will closely correlate to the price performance of a user-defined portfolio.

Using FIT Index, you can:

• Select an entire portfolio or extract a subset of a portfolio by creating a Sleeve.
• Calculate the closing price for each of the components for a statistically relevant period.
• Weight each of the components comprising the portfolio or Sleeve by their individual contribution to the dollar value of the entire group.
• Correlate the price action of the weighted portfolio or Sleeve with the price action for all indices for which there are Listed options.
• Identify the indices with the six highest R-squared values.

Based on the R-squared values, you can select one of the identified indices and proceed to formulate an option order using a surrogate, which is statistically benchmarked on a price movement basis to your portfolio or Sleeve.