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Investments glossary

Natural Hedge


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Quotes of the day:

First responders did not find any drug paraphernalia or illegal drugs at the residence, the cause of death into Jackson Odell is pending an autopsy and toxicology report.

— Assistant Chief Coroner Ed Winter

A natural hedge is a management strategy that seeks to mitigate risk by investing in assets whose performance is negatively correlated. It can also be implemented when institutions exploit their normal operating procedures, for example if they incur expenses in the same currency that their revenues are generated thereby reducing exchange rate risk.

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