Study On Feasibility Of Cross - Encasing Of Cross - Product

This article firstly introduces the importance of the rebar futures and the definition of RB standard contract, and analyzes the relations of the commodities related to RB and their future contracts. Secondly, the article briefly mentions some definitions related to hedging and some statistic methods used in this article. Then the article mainly talks about the feasibility of RB cross-commodity hedging and their optimal hedging ratio. And the involved commodities are the following:the steel wire rod futures, the upstream commodities including iron rebar ore, coking coal and coke, the downstream commodities including boat deck and square billet the rebar spot price as a reference).