Banc One Currency Advisors DIVERSE OR ADVERSE? – AN ANALYSIS OF THE BENEFITS OF HEDGING STRATEGIES IN THE LIGHT OF DOWNSIDE RISK MEASURES

In the financial world, the only thing, which is certain, is uncertainty. While it is possible to make long term statements about likely range and direction of variables like equities and interest rates, no-one without insider information can make a definite prediction about whether a market rate will go up or down on any particular day. This lack of certainty has led to a prudent approach of diversification when building a portfolio.