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Hedging across the sectors
I would like to share a hedging strategy with all of you. It might be an older one. But I don't know the exact term. We have heard of Cash and Future market Hedging, Arbitrage, Option hedging and so on.
1. Hedging between the export and import oriented sectors.
2. Hedging between the macro-economic sectors within the country. e.g. you are expecting a growth in the cement sectors due to the economic boom. On the other hand, a different sector is also growing but, you are quite aware of the growth of that sector. Uncertainty is there.
So, One could pick the stock related to both of the sectors for the long run investment. And try to hedge at present between the two sectors as well as the stocks.
Could it be possible?
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