If a miner directs their hashrate to a pool with 5% hashrate, they only get paid 5% of the time (assuming proportional payouts).

If a miner hedges their hashrate (by betting against their own pool) then they get paid 95% of the time.

Hedging hashrate therefore reduces cash flow variance for miners in pools with proportional payouts.

Which is preferable?

Make money 5% of the time OR make money 95% of the time?