Study Of The Hedging Of Copper Futures On Jinbei Electrical Company Limited

With the deepening of global economic integration, our country enterpriseinevitably involved in all aspects of international trade, raw materials, products,exchange rate and interest rate risk has become an unavoidable for Chineseenterprises to go into the international market to open problems. Wide swings inprices that afflict, many enterprises in production and business operation caused greatdistress. How to deal with a risk of price fluctuations, it is the current manyenterprises need to solve the problem. Therefore, as for copper enterprises, throughthe analysis of copper futures operation rule and hedging model building, scientificand reasonable methods of hedging to determine the process and methods, not onlyfor enterprise how to scientific application of hedging in practice is very meaningful,but also hope to be able to hedging to provide reference for non-ferrous metalsenterprise.This paper expounds the related theory of hedging and the research status athome and abroad and learn about the hedging principle, function and role. Then,analyze the operation law of copper futures price, study the relationship between thecopper futures price and spot price and the factors influencing the fluctuations in theprice of copper futures, and then to wade copper enterprises involved in hedging inthe current market environment present situation analysis, points out the importanceof the hedging to wade copper enterprises. At the same time, through the research onthe enterprise, the corporate hedging business, this paper analyzes the main problemsexisting in the copulas connect-GARCH model is used to calculate hedging ratio soas to guide the copper futures hedging scheme. Finally, on this basis, the combinationof model estimation results with the actual production and operation status of JinbeiElectric co., LTD. To design the copper futures hedging programs.