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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While Citron is "short many names in the Canadian Cannabis space," it believes Pyxus is a "perfect hedge" as its story is not dependent on Canadian recreational market and management has "clearly laid out a 5-year plan." ALTRIA SAID TO BE IN TALKS WITH APHRIA: According to a report by the Global and Mail yesterday, Altria Group is said to be in talks to acquire an equity stake in Aphria.
Privet makes a perfect hedge, but it does need TLC from time to time
makes a perfect hedge, but does need TLC from time to time
Vanguard President and CEO Tim Buckley warmed up the crowd at Inside ETFs 2018 on Monday describing his "perfect hedge" for the upcoming Super Bowl.
If an interest rate swap contract meets certain criteria and its critical terms match the other conditions of ASC 815, the hedge contract may possibly be a perfect hedge and therefore qualify for adoption of a simplified accounting method (i.e., the "shortcut method").
However, gold is a perfect hedge against US dollar weakness, and ADIB is advising clients with high exposure to US dollar-denominated assets to take a position in the precious metal.
Also the paradigm of a complete financial market, where all derivatives admit a perfect hedge, becomes the exception rather than the rule.
While not a perfect hedge, the intended purpose is to avoid a market decline.
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.
Xavier Denis, chief economist at Societe Generale Private Banking says, "in the event of financial turmoil there is no such thing as a perfect hedge".