Hedge Ratio Calculator
Result
Hedge Ratio Calculator The Hedge Ratio Calculator shows the proportion of a position that is protected against price risk. Enter the value hedged and the total exposure to get the hedge ratio. — free online calculator.
Formula
- Hedge Ratio Calculator calculates its result from Value Hedged, Total Exposure. It uses the formula Hedge Ratio = Value Hedged ÷ Total Exposure. Change any input to recalculate the result instantly.
- The main inputs are Value Hedged, Total Exposure. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Hedge Ratio
- Value Hedged: 600000
- Total Exposure: 1000000
Using Value Hedged = 600000, Total Exposure = 1000000, the calculated result is 0.6.
Sample result: Calculating…
Frequently asked questions
What does the Hedge Ratio calculate?
Hedge Ratio Calculator The Hedge Ratio Calculator shows the proportion of a position that is protected against price risk. Enter the value hedged and the total exposure to get the hedge ratio. — free online calculator.
Which values should I enter?
Enter Value Hedged, Total Exposure using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Hedge Ratio = Value Hedged ÷ Total Exposure.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.