Power, Gabriel J.; Vedenov, Dmitry - In: Journal of Futures Markets 30 (2010) 3, pp. 290-304
This study analyzes the problem of multi‐commodity hedging from the downside risk perspective. The lower partial moments (LPM<sub>2</sub>)‐minimizing hedge ratios for the stylized hedging problem of a typical Texas panhandle feedlot operator are calculated and compared with hedge ratios implied by the...