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Investment · Tool

Optimal Hedge Ratio

Calculate optimal hedge ratio for risk management.

Spot Volatility (σS)
Futures Volatility (σF)
Correlation (ρ)
Optional: Number of Contracts
Spot Position (QA)
Contract Size (QF)
Effectiveness (ρ²)86.12%
Contracts (N*)1,680

h* = ρ × (σS / σF)
N* = h* × (QA / QF)

Optimal Hedge Ratio (h*)
0.7798
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