Hedging Effectiveness

The extent to which hedging an investment actually reduces risk. There are a large number of hedging strategies one can use. For example, one may take a long position on a security and then sell short the same security. However, some strategies may be forms of naive diversification, which reduce hedging effectiveness. In an extreme example, if one buys a stock and then short sells a bond in a completely different industry, one is more likely to increase risk rather than decrease it.

单词	hedging effectiveness
释义	Hedging Effectiveness Hedging Effectiveness The extent to which hedging an investment actually reduces risk. There are a large number of hedging strategies one can use. For example, one may take a long position on a security and then sell short the same security. However, some strategies may be forms of naive diversification, which reduce hedging effectiveness. In an extreme example, if one buys a stock and then short sells a bond in a completely different industry, one is more likely to increase risk rather than decrease it.
随便看	sccdcc sccdeh sc-cdma sccds scc-dvm scce sccea sccecc scced sccee scceg scceh sccej sccems sccen sccep sccer scces sccf sccfa sccfcu sccfd sccfi scc file identification scc filter access