Integrated dynamic models for hedging international portfolio risks

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Summary

Test results show that two-stage models outperform their single-stage counterparts, regardless of the hedging strategy, and simultaneous hedging of market and FX risks using stock and currency options has the best ex post performance.

Type
article
Published
2020-08-01
Cited by
13
References
74

Keywords

Hedge, Portfolio, Diversification (marketing strategy), Risk management, Currency

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