[Verse 1] Your portfolio spans the globe tonight Yen and euros dancing with your dollars But currencies shift like ocean tides Exchange rates wobble, profits holler Foreign assets gleaming on your screen Until the euro tumbles seventeen [Chorus] Hedge the risk, minimum variance Calculate your correlation Spot rate moves in wild defiance Strategic hedging saves your nation Foreign exchange exposure lurking Keep your international portfolio working [Verse 2] Swiss franc surges while your bonds are sleeping British pounds are sliding down the hill Translation losses got your balance weeping Currency mismatch pays a bitter bill Beta coefficients tell the tale Of which hedge ratios will never fail [Chorus] Hedge the risk, minimum variance Calculate your correlation Spot rate moves in wild defiance Strategic hedging saves your nation Foreign exchange exposure lurking Keep your international portfolio working [Bridge] Forward contracts lock tomorrow's price Currency swaps slice through the uncertainty Regression analysis offers sound advice Optimal hedge ratio brings serenity Covariance divided by the variance squared Minimum risk achieved when properly prepared [Verse 3] Developed markets, emerging market dreams Both can crumble when currencies collide Unhedged positions burst at foreign seams While hedged portfolios weather the tide Strategic decisions made before the storm Keep international returns in proper form [Chorus] Hedge the risk, minimum variance Calculate your correlation Spot rate moves in wild defiance Strategic hedging saves your nation Foreign exchange exposure lurking Keep your international portfolio working [Outro] Currency management, foundation stone For global wealth you're building brick by brick Never leave exchange rate risk alone Master hedging ratios, learn the trick
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