Study On The Basis Difference And Application Of Engineering Material Price

Base spread is the key factor to determine the ultimate effect of enterprises participating in hedging or engaging in arbitrage trading.It is essentially a trade of base spread for both hedging trading and arbitrage trading.Base spreads are influenced by many factors.This paper makes a simple study on futures varieties related to engineering materials from the perspective of statistical analysis.With the passage of time,the range and extreme value of base spreads in the same period are obtained by observing and studying different main contracts,which is mentioned for hedging,term arbitrage and cross-term arbitrage.It provides a reference for directionality.Generally speaking,more and more enterprises are still unfamiliar with the function of futures instruments.Owing to the neglect of risk factors in hedging by participants,risk events often occur.Generally speaking,the hedging effect of real enterprises is not satisfactory.This paper analyses the current situation of hedging among building materials trading participants.Through extensive collection and reading of the literature,a general understanding of the basic difference problem is obtained.Firstly,the paper makes a statistical analysis of the fluctuation of the price of engineering materials and the change of the corresponding base difference,then introduces the hedging theory,leads to the construction of the hedging model,and innovatively processes the daily level data of the spot price of threaded steel with the index model,thus converting the spot price information into the auxiliary trend of weekly level with multi-empty indication signal.Indicators,through statistical verification,in the statistical cycle of the example,the accuracy of the index model in predicting the future price trend of the threaded steel is 68.05%,reaching the set level of "accurate" prediction accuracy.In the subsequent example verification,because the statistical cycle of the example just falls in the interval of the spot price rising unilaterally,the robust timing operation is in place.The final performance presentation has not been able to overcome the traditional operation.However,hedging operation has shown excellent risk hedging function in the rising price of Engineering materials.The research of longer time range and higher frequency will be the direction of further research in the future.This paper chooses typical cases to construct a procurement model based on hedging,and implements the theory of hedging to the level of practical operation.The common practice of construction enterprises in our country is to strengthen the internal control method to manage the cost,strengthen the management in the procurement process,strengthen the examination and approval of the payment process,etc.At present,most enterprise managers are still relatively unfamiliar with futures financial instruments,and they usually do not take the initiative to control the cost through hedging in their daily management.In the last part of this paper,risk management is introduced into hedging operation in order to further enhance the performance of hedging by strengthening risk management.