Short Term Hedging Using Futures Contracts

Maria CARACOTA Dimitriu () and Ioana – Diana Paun ()
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Maria CARACOTA Dimitriu: The Bucharest University of Economic Studies, Romania
Ioana – Diana Paun: The Bucharest University of Economic Studies, Romania

Economia. Seria Management, 2012, vol. 15, issue 2, 436-445

Abstract: The objective of this paper is to demonstrate the effectiveness of risk management portfolio using futures contracts to achieve hedging. The risk can be minimized once measured, and the traditional tool of market risk management is hedging. The objective is to identify the optimum position to minimize the variation in a contract concluded now. Clearly hedging portfolio will reduce not only risk but also profitability. In conclusion hedging aims risk management, no additional gain. Portfolio manager will have the opportunity to carefully consider the relationship between risk and return in order to act according to his profile and targeted results.

Keywords: Futures contracts; derivatives; hedging; OLS. (search for similar items in EconPapers)
JEL-codes: C12 G11 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rom:econmn:v:15:y:2012:i:2:p:436-445

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