Cross-Market Heding during The Credit Crunch
Systematic risks cannot be eliminated by diversifying within one market. However, the systematic risk of the combined markets can be reduced significantly by hedging across the markets. It is an alternative way to hedge against the systematic risk apart from holding particular futures contracts. Thi...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2008
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/22122/ |
| _version_ | 1848792361128165376 |
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| author | Huang, Yibing |
| author_facet | Huang, Yibing |
| author_sort | Huang, Yibing |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Systematic risks cannot be eliminated by diversifying within one market. However, the systematic risk of the combined markets can be reduced significantly by hedging across the markets. It is an alternative way to hedge against the systematic risk apart from holding particular futures contracts. This research employs samples from FX and equity markets to prove the hedging possibility. Empirical results, especially of samples during the latest credit crunch period, support the assumptions satisfactorily and the hedging against the systematic risk is applicable when this sort of risk becomes outstanding. Nevertheless, this paper suggests that not any two markets have preconditions for hedging but they can be selected primarily by reviewing their economic properties and other interconnections. Moreover, evidences of solidly correlated period and existence of risk-reducing features in these periods are needed to be found. |
| first_indexed | 2025-11-14T18:43:11Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-22122 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:43:11Z |
| publishDate | 2008 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-221222018-01-23T21:05:53Z https://eprints.nottingham.ac.uk/22122/ Cross-Market Heding during The Credit Crunch Huang, Yibing Systematic risks cannot be eliminated by diversifying within one market. However, the systematic risk of the combined markets can be reduced significantly by hedging across the markets. It is an alternative way to hedge against the systematic risk apart from holding particular futures contracts. This research employs samples from FX and equity markets to prove the hedging possibility. Empirical results, especially of samples during the latest credit crunch period, support the assumptions satisfactorily and the hedging against the systematic risk is applicable when this sort of risk becomes outstanding. Nevertheless, this paper suggests that not any two markets have preconditions for hedging but they can be selected primarily by reviewing their economic properties and other interconnections. Moreover, evidences of solidly correlated period and existence of risk-reducing features in these periods are needed to be found. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22122/1/08MAlixyh14.pdf Huang, Yibing (2008) Cross-Market Heding during The Credit Crunch. [Dissertation (University of Nottingham only)] (Unpublished) HEDGING SYSTEMATIC RISK CREDIT CRUNCH |
| spellingShingle | HEDGING SYSTEMATIC RISK CREDIT CRUNCH Huang, Yibing Cross-Market Heding during The Credit Crunch |
| title | Cross-Market Heding during The Credit Crunch |
| title_full | Cross-Market Heding during The Credit Crunch |
| title_fullStr | Cross-Market Heding during The Credit Crunch |
| title_full_unstemmed | Cross-Market Heding during The Credit Crunch |
| title_short | Cross-Market Heding during The Credit Crunch |
| title_sort | cross-market heding during the credit crunch |
| topic | HEDGING SYSTEMATIC RISK CREDIT CRUNCH |
| url | https://eprints.nottingham.ac.uk/22122/ |