Figure 1. Time-varying international optimal hedge ratios. IOHR is the international optimal hedge ratio estimated by the proposed alternative approach in this paper. OHR-CFM is the optimal hedge ratio estimated by the conventional hedge strategy in which the currency risk is hedged in currency derivative markets

From

The Dynamic International Optimal Hedge Ratio

Xiaochun Liu, Brian Jacobsen

International Journal of Econometrics and Financial Management. 2014, 2(3), 82-94 doi:10.12691/ijefm-2-3-1