Lets assume that I have an equity strategy that generates signals intraday to buy and sell. I run this strategy across the SP500 names. Now within my strategy I want to incorporate a method to help me decide if I want to take a certain trade on or not, based on my current portfolio composition.
Currently I have a very simple idea of how to do this. I compute the beta of each symbol I want to trade against the market index and look at my beta exposure to the market. If I am above a certain threshold, I don't take long or short signals accordingly.
Just wondering if there are better methods out there which would help me measure my exposure to the market and various sectors ? My aim here is to make sure that I am not too exposed to one sector or the market in general , before taking on additional positions.