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You want to hedge against purchasing asset X in the future by getting into a futures contract. However, you can't find an appropriate futures contract
You want to hedge against purchasing asset X in the future by getting into a futures contract. However, you can't find an appropriate futures contract on asset X, so you look into futures contracts on asset Y. If the correlation between the prices of asset X and futures on asset Y is negative, explain if you should go long or short in a position on asset Y while trying to hedge. If the correlation between the prices of asset X and futures on asset Y is zero, explain if any hedging on your part will even be effective.
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