A Study of Perfect Hedges
AbstractIn this study, we attempt to identify the asset which has the best hedging characteristics against inflation. We study stock, bond, commodity, real estate and oil indexes. We also study these indexes tracking exchange traded funds (ETFs) to determine the most beneficial tradable asset in addition to the more theoretical index for inflation hedging. We find that, in our sample, oil is the best hedge against inflation, even though three in total are a good hedge—oil, gold and corn—with corn and oil being complete hedges, while gold is a partial hedge. Two assets have conflicting results depending on whether we examine the index or the ETF: the real estate index is a hedge, whereas real estate ETF is the opposite of a hedge. Similarly, the bond index is not related to inflation, whereas bond ETF is the opposite of a hedge. We find that stocks, soy and beef are not hedges against inflation. View Full-Text
Scifeed alert for new publicationsNever miss any articles matching your research from any publisher
- Get alerts for new papers matching your research
- Find out the new papers from selected authors
- Updated daily for 49'000+ journals and 6000+ publishers
- Define your Scifeed now
Ivanov, S.I. A Study of Perfect Hedges. Int. J. Financial Stud. 2017, 5, 28.
Ivanov SI. A Study of Perfect Hedges. International Journal of Financial Studies. 2017; 5(4):28.Chicago/Turabian Style
Ivanov, Stoyu I. 2017. "A Study of Perfect Hedges." Int. J. Financial Stud. 5, no. 4: 28.
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.