For companies buying natural gas, what is Optimized Volume-Based HedgingSM?
Planalytics’ Optimized Volume-Based Hedging is a risk management approach that companies use to acquire the natural gas it needs by systematically layering in its buys/hedges at cost effective price points across a customized time horizon. The approach which can be extended across Planalytics’ 18-month view of the market, significantly reduces risk by limiting the negative impact of any poorly timed buying decisions. The approach allows companies to accumulate natural gas on days when market movements make current prices attractive. Planalytics determines if prices are undervalued or overvalued from comprehensive modeling technologies that incorporate the impacts of weather, supply and demand fundamentals, global financial and economic variables and technical trading.
