tmp_cox

How to hedge marketrisk with opposite movements in the market?

AEX (TVC:AEX)  
TVC:AEX   AEX
8
In the follow graph you can see the following 'stocks':
GOLD ETF, AEX (indextracker) and Unilever

You can also see the expanded ghost patern that will predict the marketmovement/divergence between the 'stocks'.

In this case:
GOLD will fall = AEX will rise | Unilever will fall or rise 3.5% more than the AEX will rise or fall
(or)
AEX will fall = GOLD will rise | Unilever will fall or rise 3.5% more than the AEX will rise or fall

Why have i choose Unilver to compare with the index and gold?
*'Some stocks do heavly move in different directions, even if there are no updates from the company. Unilver is one of this kind of company's'. This means that we can hedge risk or take risk in combination with the prospected marketmovements in the index / commoditie

Information deserved from: Bloomberg and ING Markets
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