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Hedge Effectiveness
The degree to which a hedge transaction reduces the risk of fluctuations in the cash flows or value of an underlying exposure.
Hedge Effectiveness
A measure of how well a hedge transaction reduces the risk of the exposure that the hedge was intended to protect against.
Economic Relationship
Refers to the interactions between different economic variables or entities, such as the connection between supply and demand or investment and economic growth.
Hedge Ratio
A ratio used to measure the proportion of a position that is hedged, indicating the effectiveness of a hedge against fluctuations.
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