Diversification and Investment Protection against Downside Risk Food Price

Abstract

This paper describes the diversification and protection of investments in food against downside risk using results from the relationship of dependency between the dollar (USD) US and prices for corn, soybeans, wheat and rice. Given that food products are in a process of financialization, the consequences of USD bonds with food prices for managing food risk policy were discussed. We provide evidence of the effectiveness of USD hedging to reduce the risk of a portfolio of food and better overall performance in terms of function loss investor a portfolio composed only of food.

Keywords

• cobertura
• riesgo a la baja
• valor en riesgo
• pérdidas esperadas
• precios de alimentos.