Financial Investment, Derivatives Hedging, and Risk Management

Dear Colleagues,

The journal Risks is seeking high-quality original papers for a new Special Issue that endeavors to examine latest original research on derivatives hedging, financial investment, and risk management practices in capital markets, financial institutions, hedge funds, mutual funds, and futures and options markets.

It is noteworthy that financial investment risk management is a crucial practice that helps investors protect their portfolios from unexpected losses due to market volatility, economic changes, or geopolitical events. At its core, risk management involves identifying potential risks, measuring their impact, and implementing strategies to mitigate them. One effective tool in this process is the use of derivatives for hedging purposes.

The researchers and practitioners may also consider topics related to how derivatives offer powerful risk management strategies, but may carry their own risks, such as counterparty risk, liquidity risk, and due to its complexity, some unknown risks. Therefore, effective financial risk requires a thorough understanding of these instruments and a well-structured approach to their use. Areas of interest include, but are not limited to, the following topics:

• Performance evaluation of active versus passive investment strategies;
• Crypto currencies as an investment asset—risk-return analysis;
• Portfolio optimization techniques using modern portfolio theory versus machine learning models;
• Investment strategies during high inflationary periods;
• The role of derivatives in market liquidity and efficiency;
• The use of derivatives by institutional investors;
• The impact of derivatives trading on underlying asset volatility;
• Hedging with derivatives;
• Measuring and managing market risk;
• Tail risk management using derivatives instruments;
• Application of artificial intelligence in financial risk assessment.

Prof. Dr. Vivek Bhargava
Dr. Mukesh Chaudhry
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Risks is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

• financial risk management
• hedging
• derivatives
• volatility
• performance evaluation
• optimization
• active versus passive investment
• Value-at-Risk (VaR)
• liquidity and efficiency