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Better Cross Hedges With Composite Hedging? Hedging Equity Portfolios Using Financial and Commodity Futures [PDF]

open access: possibleSSRN Electronic Journal, 2007
Unless a direct hedge is available, cross hedging must be used. In such circumstances portfolio theory implies that a composite hedge (the use of two or more hedging instruments to hedge a single spot position) will be beneficial. Surprisingly, the study and use of composite hedging has been neglected; possibly because it requires the estimation of two
Fei Chen, Charles Sutcliffe
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Cash Ethanol Cross-Hedging Opportunities

2002
Increased use of alternative fuels and low commodity prices have contributed to the recent expansion of the U.S. ethanol industry. As with any competitive industry, some level of output price risk exists in the form of volatility; yet, no actively traded ethanol futures market exists to mitigate output price risk.
Franken, Jason R.V.   +3 more
openaire   +4 more sources

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