Browsing: risk premium

Posts Tagged ‘ risk premium ’

The Connection between Audit Fees and Derivative Hedging

Sep 11th, 2018 | Filed under: Newly Added, Hedge Fund Operations and Risk Management, The A.I. Industry, Risk management, oil, Commodities, Commodities: Examples, Risk Management Strategies & Processes

It is generally acknowledged that there exists a positive association between business risk and audit fees. There is room for dispute as to what that means. On the one hand, the riskier clients for whom an audit firm works might simply be the ones that have the most complicated books,Read More

Using the Variance Risk Premium to Predict Futures Markets

Jul 15th, 2018 | Filed under: Newly Added, Commodities, Hard metals, Risk management, oil, Commodities, Risk Metrics and Measurement, Commodities: Examples, Energy, Risk Management Strategies & Processes, Gold

A new study of volatility in commodity prices indicates that both the total and the decomposed variance risk premiums of at least certain commodities markets contain information with predictive power. The variance risk premium is the pay-off of the synthetic variance swap contract. Specifically, it’s the difference between the floatingRead More