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Empirical analysis of oil risk-minimizing portfolios: the DCC–GARCH–MODWT approach

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This paper strives to analyze hedging strategies between Brent oil and six other het- erogeneous assets – American ten-year bonds, US dollars, gold, natural gas futures, corn futures, and Europe, Australasia and Far East exchange-traded funds (EAFE- ETFs) – observing five wavelet time horizons and considering three different risk metrics: variance, value-at-risk (VaR) and conditional value-at-risk (CVaR).

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