Bucher, Melk CasparMelk CasparBucher2023-04-132023-04-132016-07-02https://www.alexandria.unisg.ch/handle/20.500.14171/104158This research proposes Conditional Currency Hedging based on FX risk factors to reduce total portfolio risk of given stock, bond or commodity portfolios. In our employed sample, a conditional currency hedging framework based on implied FX volatility results in lower variance of a global equity portfolio than achieved by either no, full or unconditional mean-variance hedging, both in- and out-of-sample. Further analysis with bond and commodity performance data will follow.enCurrency HedgingCurrenciesRisk managementFX volatilityimplied volatilityConditional Hedgingconference lecture