Unlock the secrets of cross hedging with expert Ryan O’Connell, CFA, FRM, as we delve into the optimal number of futures contracts for your investment strategy. Discover the essential historical data required to construct a robust cross hedge, learn how to calculate the minimum variance hedge ratio with precision, and master the calculation of the optimal number of futures contracts to maximize your portfolio’s performance. This tutorial also walks you through a step-by-step process to assess potential gains and losses on cross hedged positions, equipping you with the analytical skills to make informed hedging decisions. Join us to elevate your financial acumen and navigate the complexities of cross hedging with confidence.
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Chapters:
0:00 – What is Cross Hedging?
1:00 – Historical Data Needed to Find Optimal Hedge
1:27 – Calculate Minimum Variance Hedge Ratio
3:20 – Calculate Optimal # of Futures Contracts
4:44 – Calculate Gains & Losses on Cross Hedged Positions
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
