This paper evaluates different hedging strategies for copper futures contracts traded at the London Metal Exchange. We estimate dynamic and constant hedge ratio for futures contracts. Various models (Minimum variance hedge ratio, OLS regression model, VAR) are used to estimate constant hedge...

The commodity market has been becoming one of the main popular segments of the financial markets among individual and institutional investors in recent years. Likely to the equity market, the problem of anomalies in the commodities market is becoming an interesting phenomenon, especially in the...