Configuration
The configuration files that affect HedgeEffectiveness calculations are:
| Configuration File | Details |
| Assumptions | Base assumptions common to all calculations. |
| BusinessUnits | Two books defined in the business unit hierarchy must be identified for a hedge effectiveness calculation. One is the "actual" book and the other is the "hedge" book. |
| HedgeEffectivenessDefinitions | The inputs for both supported methods (Dollar Offset or Regression Analysis). |
| HedgeEffectivenessCalculations | A calculation specifies a task name, the two business units and HedgeEffectivenessDefinition. Results are generated for each calculation specified. |
Hedge Effectiveness Definition
The assumptions driving the hedge effectiveness calculation are in a configuration file called HedgeEffectivenssDefinitions. As can be seen in the example below, this file supports both the Regression Analysis and Dollar Offset calculation types.
Hedge Effectiveness Calculation
The example hedge effectiveness calculation below shows a calculation to be the linkage between the two relevant business units, a workflow task and a hedge effectiveness definition. These elements combine to allow calculations to be run by the system.
Viewing Results of a Hedge Effectiveness Calculation
Opening a successful hedge effectiveness task from the summary page, a user can select a particular calculation to view its results. Here is a sample result:
Hedge Effectiveness Report
Results can be published to a report. Here is a sample report using the Regression method:
