perfect hedge

Perfect hedge

A situation in which the profit and loss from the underlying asset and the hedge position are equal.

Perfect Hedge

A hedge on an investment that eliminates the risk on another investment entirely. Perfect hedges are fairly rare as most investments carry at least a little unique risk that cannot be hedged. However, an example of a perfect hedge is a position on option that completely offsets a position in the underlying asset. While perfect hedges eliminate risk, they also greatly reduce or sometimes eliminate the potential for a return.

perfect hedge

A hedge that exactly offsets any gains or losses from an existing investment position. An example of a perfect hedge is the short sale of an owned security in order to lock in an existing profit and transfer it to a subsequent tax year. Because very few hedges are perfect, most of them operate merely to offset a portion of losses or gains. See also risk hedge.
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Even though the usage of wacd is comply with shariah principle, but it does not gives a perfect hedge to the customers.
Brooks and Chaves oversee what the FBI calls "Operation Perfect Hedge," which has led to more than 60 convictions of hedge fund traders, analysts and industry consultants.
The difficulty is that there's no perfect hedge against it.
I'd love to find the perfect hedge and we're still looking, but for now we have something that works," Lautch says.
Investors are no doubt asking themselves about inflation-hedging investments, but unfortunately there is no "magic bullet" - no single investment that serves as a perfect hedge in all periods of inflation.
The particular status of the insurance market does not allow to invest in external assets that could provide a perfect hedge of the mortality risk.
Overnight Index Swaps (OIS) market does offer an alternative but does not qualify as a perfect hedge.
Cape Cross is represented by five lots, including colts out of Group 2 winner Monturani (147) and Group 3 winner Perfect Hedge (190).
Under Bodie's assumption that future pension obligations are fixed nominal quantities, it is clear that nominal bonds provide a perfect hedge.
John Oxx runs Perfect Hedge (Michael Kinane) while Pat Shanahan, recently returned to race-riding, will be on board Chelsea Rose for Con Collins, a partnership which will also be associated with Dandy Man, so unlucky at Royal Ascot, in the five-furlong King Of Berrs Stakes on Sunday.
She looks to have most to fear from the John Oxx-trained duo of Perfect Hedge and Allexina, both of whom would probably prefer easier ground.