Risk management is nothing new, despite the increased attention given to the subject over the past decade or two. For … well over one hundred years farmers have engaged in risk management, hedging their risks against price fluctuations in … reduce or eliminate the risk of low prices simply by holding a diversified portfolio. ; Why, then, are managers doing for …

"correlation breakdown." As a result, risk managers worry that their hedges will be useless when they are most needed, namely …. We make this point analytically, by way of several numerical examples, and via an empirical illustration. ; But, risk …