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You currently hold Asset Y and would like to hedge this position with Futures X. The returns of Asset Y and Futures X are positively

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You currently hold Asset Y and would like to hedge this position with Futures X. The returns of Asset Y and Futures X are positively correlated. To accomplish optimal hedged position, how should you trade? Direction of the trade depends on the variance of Asset Y returns Long Futures X Direction of the trade depends on the variance of Asset X returns O Short Futures X

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