Diversification and Investment Protection against Downside Risk Food Price

Authors

  • Mikel Ugando-Peñate Pontificia Universidad Católica del Ecuador, Sede Santo Domingo

Keywords:

coverage, downside risk, value at risk, expected loss, food prices.

Abstract

This paper describes the diversification and protection of investments in food against downside risk using results from the relationship of dependency between the dollar (USD) US and prices for corn, soybeans, wheat and rice. Given that food products are in a process of financialization, the consequences of USD bonds with food prices for managing food risk policy were discussed. We provide evidence of the effectiveness of USD hedging to reduce the risk of a portfolio of food and better overall performance in terms of function loss investor a portfolio composed only of food.

Author Biography

Mikel Ugando-Peñate, Pontificia Universidad Católica del Ecuador, Sede Santo Domingo

 

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Published

2016-06-29

Issue

2016: Número Especial

Section

Número Especial

License

Esta revista proporciona un acceso abierto inmediato a su contenido, basado en el principio de que ofrecer al público un acceso libre a las investigaciones ayuda a un mayor intercambio global de conocimiento.

This journal provides immediate open access to its content, based on the principle that providing the public with free access to research supports a greater global exchange of knowledge.