implications in terms of commodity allocation for inflation hedging portfolios these recent works have paved the way for. We …

equity indices (US, Japan, Europe, UK and Canada), and examine the historical performance of currency hedging strategies in …. Furthermore, we show that the risk reduction achieved historically by following an easily implementable dynamic currency hedging …-risk hedging strategies, we find that using certain hedging instruments can slightly reduce total portfolio returns. However, in …

. Furthermore, they actively manage the portfolio risk of their speculative positions through hedging positions in correlated … currencies. The exchange rate effect of separate risk hedging is economically significant and amounts to a return difference of 3 ….6 percent over a 5 day event window between currencies with high and low risk hedging value. The large price impact of hedging …

and fundamentals. Speculation ; Limited Arbitrage ; Hedging ; Exchange Rate Disconnect … to strengthen the statistical evidence on the predicted shortrun exchange rate dynamics. Cross-sectional currency hedging …