Concept Of Hedging Research Articles

Theorising the Hedging Strategy: National Interests, Objectives, and Mixed Foreign Policy Instruments

Hedging is a comprehensive foreign policy strategy that mixes competitive and cooperative approaches and is used to manage competing national interests during conditions of uncertainty over the future distribution of power. However, the literature is characterised by a lack of consensus on the central features of hedging, which leads to contradictions in how the concept of hedging is applied. First, this paper assesses the definition of hedging, identifies three rival approaches, and links the risks and opportunities of hedging with uncertainty over the future international distribution of power. Second, it discusses how the various interpretations of hedging have inspired different analytical models. Finally, it explains hedging as a theoretically intermediate and analytically mixed strategy. These claims are supported by studying the Asia-Pacific region, where hedging has become the dominant strategy for coping with the uncertainty surrounding the future distribution of power stemming from the rise of China.

Forecast and hedging of risks in decision-making by an investigator and a judge

The study is aimed at determining the role and significance of forecasting in the professional activities of an investigator and a judge. Methodologically, the study is based on probability theory, signal theory, project management and risk management. The empirical basis of the study is criminal cases initiated against judges as well as against investigators and other law enforcement officials due to negligence. The data of judicial and criminal statistics are used. The author analyzes the empirical material and solves the problem of forecasting by applying the approach is due to the classification of investigative and judicial risks proposed by the author himself according to the nature and content of the consequences of their implementation on legal (formal and material) and social risks. A qualitative-quantitative methodology for assessing forensic and investigative risks developed by the author is proposed. The concept of hedging is introduced into scientific legal circulation as a system of ways to prevent or minimize the negative consequences of their occurrence. The main conclusion is made about the need for judges to master the scientific methods of forecasting and managing risks, as well as to establish clear criteria for liability for grave consequences as a result of gross judicial errors in forecasting.

China’s Responses towards The US Pivot to Asia: “The Dialectics of Hedging and Counter-Hedging”

The US pivot to Asia, which encompassed the strategy of shifting the US focus on deploying the strategic-military, diplomatic, and economic assets to the Asia-Pacific region, had generated enormous debates among scholars and Chinese state officials. Such development then raises questions about their responses to such a US strategy in Asia. In regards to this question, this article evaluates that the US pivot to Asia had devised two primary responses in mainland China, ranging from hardline and moderate stances in Chinese scholars and officials. The hardliners stood for perceiving the US pivot to Asia as a strategy to contain China's rise, which has multiple potencies to trigger an open confrontation. In contrast, the moderates viewed the US pivot to Asia through the elements of cooperation and competition. Despite these contentions, this article argues that the US pivot to Asia had further triggered China's increasing military, diplomatic, and economic capabilities. It also sees the Sino-American relations through dual track reciprocal relations comprising the competitive-negative and cooperative-symbolic elements which had been restraining each other from going into open conflict yet were still tensioning. Therefore, to further analyze China's responses, this article will simultaneously use the concept of hedging and the “use of force” by Art and Jervis.

Reacting to the Decline of the West?

Abstract This article discusses the European Union (EU)’s strategic adaptation to the relative decline of the United States (US)-led Western world order by introducing the concept of hedging: a strategy of concomitant engagement with the system leader and its competitors aiming to minimise the risks of confrontation with either of them. To grasp the EU’s shift towards strategic hedging, the article analyses the subsequent 2003 Security Strategy, 2008 Implementation Report, 2015 Strategic Review and ongoing 2016 Global Strategy, and then puts the latter’s core concepts of ‘principled pragmatism’ and ‘strategic autonomy’ into perspective vis-à-vis international developments since 2016, related to ‘America First’ and the Sino-American rivalry. The article ultimately argues that, confronted with global power diffusion but constrained by the preponderance of transatlanticism, hedging has become a primary strategic option for the EU to emancipate from the US without alienating it and to compensate for the waning of the Western world order.

Hedging against China: formulating Canada’s new strategy in the era of power politics

ABSTRACT There is an emerging consensus that Canada needs a new China strategy as its conventional approach of engagement proved to be ineffective vis-à-vis Beijing’s coercive diplomacy. But what should be the central concept of such a strategy, something equivalent to engagement in the old strategy? In answering this question, the present article submits the realist concept of hedging and demonstrates that confrontation, another realist concept, is as non-viable as the liberal concept of engagement. While occupying a mid-point between these two alternatives, hedging has its own distinct features, standing on the principles of strategic literacy, soft balancing, economic pragmatism, and prudent statecraft. To develop its arguments, the article employs the concept-building and measurement approaches developed by Goertz, Gerring, and Collier et al., respectively. In addition, the article will explain why other alternative concepts such as bandwagoing and transcending should be rejected.

Hedges in English and Arabic: A Contrastive Study

Hedging is a concept in academic writing which simply signifies the idea of being cautious in one’s words. It is achieved through the use of various linguistic expressions to show uncertainty and indirectness in style. The concept of hedging is remarkably wide and interwoven. Its boundaries run over many fields of language. That is why the devices of hedging are discussed from many angles and viewpoints in linguistics. In English, the concept and its expressions are well known. The study in hand makes a thorough survey of them. Being a popular concept in English, the researcher thought of looking for it and its linguistic tools in Arabic which is a deeply expressive language. After a detailed exploration in Standard Arabic books of grammar and linguistics, peculiarly, it has been found that the concept of hedging is not apparently mentioned and its tools are not distinguishably categorized as hedges , as in English. However, Arabic too has its own devices of expressing hedging but without being classified as hedges. The study in hand scans these hedges in Arabic as counterparts of their peers in English.

Playing the Diversity Card: Saudi Arabia’s Foreign Policy under the Salmans

ABSTRACTSince the 2003 regime change in Iraq and the 2011 Arab uprisings, the political map of the Middle East has been in flux. Regional actors have taken advantage of emerging windows of opportunity, which have affected the outcome of this process. Saudi Arabia’s role as an aspiring regional hegemon in the region is salient: the country’s assertive course in shaping its neighbourhood coincides with a more independent foreign policy that goes beyond the traditional US alliance and seeks to diversify its international partners. This diversification of Saudi foreign policy since the ascension to the throne of King Salman in 2015 is explained by using the IR concept of hedging.

The concept of hedging and its application to Southeast Asia: a critique and a proposal for a modified conceptual and methodological framework

AbstractIn the context of the complex unipolar post-Cold War period that has witnessed China’s reemergence as an economic and military power, small and middle powers are increasingly considered to be hedging. This analysis is especially prevalent in relation to Southeast Asian countries, many of which face security challenges posed by China. However, as the literature on hedging has expanded, the concept’s analytical value is no longer obvious. Different understandings of hedging compete within the literature, and there are many criteria by which hedging is empirically ascertained, leading to confusion even over the basic question of which countries are hedging. In response, this article presents a modified conceptual and methodological framework that clearly delineates hedging from other security strategies and identifies key criteria to evaluate whether smaller powers are hedging when confronting a serious security challenge by one of the major powers. This framework is then applied to Malaysia and Singapore.

Comparison of Optimal Hedging Policies for Hydropower Reservoir System Operation

Reservoir operation rules play an important role in regions economic development. Meanwhile, hedging policies are mostly applied for municipal, industrial, and irrigation water supplies from reservoirs and it is less used for reservoir operation for hydropower generation. The concept of hedging and rationing factors can be used to maintain the water in a reservoir for the sake of increasing water storage and water head for future use. However, water storage and head are the key factors in operation of reservoir systems for hydropower generation. This study investigates the applicability of seven competing hedging policies including four customary forms of hedging (1PHP, 2PHP, 3PHP, DHP) and three new forms of hedging rules (SOPHP, BSOPHP, SHPHP) for reservoir operation for hydropower generation. The models were constructed in MATLAB R2011b based on the characteristics of the Batang Padang hydropower reservoir system, Malaysia. In order to maximize the output of power generation in operational periods (2003–2009), three optimization algorithms namely particle swarm optimization (PSO), genetic algorithm (GA), and hybrid PSO-GA were linked to one of the constructed model (1PHP as a test) to find the most effective algorithm. Since the results demonstrated the superiority of the hybrid PSO-GA algorithm compared to either PSO or GA, the hybrid PSO-GA were linked to each constructed model in order to find the optimal decision variables of each model. The proposed methodology was validated using monthly data from 2010–2012. The results showed that there are no significant difference between the output of monthly mean power generation during 2003–2009 and 2010–2012.The results declared that by applying the proposed policies, the output of power generation could increase by 13% with respect to the historical management. Moreover, the discrepancies between mean power generations from highest to lowest months were reduced from 49 MW to 26 MW, which is almost half. This means that hedging policies could efficiently distribute the water-supply and power-supply in the operational period and increase the stability of the system. Among the studied hedging policies, SHPHP is the most convenient policy for hydropower reservoir operation and gave the best result.

Simulation and optimization of multiple points hedging policies for operation of Cameron Highland hydropower reservoir system, Malaysia

Although hydropower generation has obvious advantages, but many of hydropower reservoir systems are still not operated efficiently and being operated based on experience. It is noticeable that even small improvement in operational rules can improve the efficiency of hydropower system. Since the output of hydropower generation depends on water release and water head, the concept of hedging and rationing can be used to minimize water release, maximize storage in the reservoir and increase water level in the reservoir. In this research, three competing hedging policies namely, one-point, two-point, and three-point are applied in order to optimize and improve the current operational policies used to generate hydropower in Cameron Highland hydropower system. The results indicate that the output of power generation in the studied system can be increased around 13% if the proposed hedging policies will be followed. Moreover, the discrepancies between highest and lowest monthly mean power generation can be reduced from 31% to 10% if the proposed hedging policies are followed in operating the studied system. This means that hedging policies will scatter the power supply in the operational period and increase stability of the system. Based on performance criteria, the best performance of the system is obtained from applying three-point hedging policy. The above results show the applicability of the proposed operational policy and improvement in power production.

Lindung nilai (Hedging) perspektif Islam: Komparasi Indonesia dan Malaysia

Islamic Hedging is one of the instruments in financial management that is used to reduce the risks associated with price and currency movements. But in a conventional perspective, hedging involves the use of controversial derivative instruments in Islamic view. The noble objective of this hedging has been misunderstood for profit only. Therefore, the concept of hedging needs further discussion because of various interpretations of the meaning of it. This study found that the concept of hedging according to Islam is different from the concept of conventional hedging. In addition, there are differences in the use of contracts in Islamic Hedging in Indonesia and Malaysia.

The Concept of Hedging in Islamic Financial Transactions

Hedging is a method to safeguard or minimize loss from risk that constantly exists in the financial market. Nevertheless, hedging in conventional perspectives involves the usage of derivative instruments which are controversy in Islamic view. Thus, the noble purpose of hedging that is to manage risk has been misunderstood as only to gain profit. The concept of hedging needs a further discussion because of its various interpretations on the meaning of hedging. Hence, the aim of this study is to discuss the general concept of hedging and subsequently the concept of hedging according to Islam. The approach used in this study of content analysis is the qualitative research method of document analysis. The researcher highlights the literature materials such as academic books relating to hedging including contemporary and classic fiqh scriptures. The study finds that the concept of hedging according to Islam is different from the conventional concept of hedging. This means, the study has developed a new theory of Islamic hedging. The theory of Islamic hedging must be based on the hadith of al-kharaj bi al-daman and fiqh maxim of al-ghunm bi al-ghurm approaches. In addition, the objective of Islamic hedging to reduce risk must only be related to real economic activities.

Test of the Effectiveness of Hedging

FUTURES markets have been analyzed in two apparently different ways for the purpose of evaluating their efficiency for hedging purposes. The different approaches purport to reflect different concepts of hedging. The main objective of this article is to examine the relationship between the two testing procedures and to consider the adequacy of the tests in the light of the relevant concepts of hedging.