A Financial markets around the world have seen a high degree of volatility in last 5 years and hence, after recent financial crisis in USA, followed by debt crisis in Europe have forced academicians and portfolio managers to re-evaluate the degree of integration between different financial...

There is no dearth of research in the area of Optimal Hedge Ratio estimation. The general consent goes towards use of Multivariate Generalized Autoregressive Conditionally Heteroscedastic (MGARCH) model because of superior outcomes having low portfolio volatilities over other models (like: OLS...