Carbon Futures — Emerging Asset with Hedging Benefits
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/