Carbon Futures — Emerging Asset with Hedging Benefits

Quantpedia
May 6, 2022

Diversification is one way of minimizing the risk of a portfolio. A well-diversified portfolio contains numerous assets from various sectors, each having a small weight so that a crash of any individual security does not hit the entire portfolio. The authors behind this paper came up with a new idea for diversifying stock portfolios. They examined new emerging asset, carbon futures.

https://quantpedia.com/carbon-futures-emerging-asset-with-hedging-benefits/

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