Sentences with phrase «perfect hedge»
The phrase "perfect hedge" means having a strategy or investment that completely balances or offsets any potential losses with gains. It's like having an ideal shield to protect you from losing money on one investment by making a different investment that counteracts those losses. Full definition
They say commodities can be a nearly perfect hedge for real lifestyle costs when buying food and gasoline.
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Note that those aren't perfect hedges either - the deltas may move differently.
Perfect hedges rarely exist, and if they do, they are more expensive than imperfect ones.
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However, as S&P explains: «It is important to remember that since only beginning - of - period balances are hedged, the index does not assume a perfect hedging of currency movements.»
Although risk managers are always aiming for the perfect hedge, it is difficult to achieve in practice.
However, the perfect hedge against inflation would have a 100 % positive correlation with inflation, where returns increase as inflation increases.)
Investopedia at least clarifies that we shouldn't expect any real - world asset to act as a perfect hedge against anything.
This is not to say that bonds are a perfect hedge against rapid changes in inflation.
It is never a perfect hedge, however, because rising volatility during an extreme limit move of the futures could hurt both sides, and a non-neutral gamma will change the delta factors.
represents the perfect hedge for the Euro debt crisis — if we sail through the crisis, the fundamental case I outlined remains, while if everything goes horribly wrong (increasing budget deficits, debt restructurings, defaults, Euro ejections / withdrawals etc.) that will be even more reason for investors to flee to German assets, the hard core of the Euro and Europe.
you want a perfect hedge: if you buy the equivalent of $ 1,000 of the stock at $ 100 and sell it at $ 120, you want to receive a profit of $ 200 regardless of the fluctuations of the $ / $
These stocks constitute a perfect hedge against inflation, since energy and resource prices rise if inflation roars.
While investing in the United States Gasoline Fund ETF is not a perfect hedge against fluctuating gasoline prices (gasoline prices can vary quite a bit by region), it should provide reasonable protection in helping you reach your target price per gallon of gas of $ 3.00 or whatever the current price of gasoline is that you want to «lock in»).
Variable life as well as VUL policies form a perfect hedge against inflation.
Gold has always traditionally been the perfect hedge against market volatility and will now be available in a tokenized form as «Gold -2-Go.»
Metals like gold and silver can make a perfect hedge against crypto.