Practical application of the algorithm for hedging interest and currency risks

There are various methods of managing market risks. Among them, the most modern method is hedging. An algorithm for hedging interest and currency risks is proposed to select an instrument that allows you to hedge risks, as well as obtain optimal financial performance based on the likelihood of each scenario. The practical application of the algorithm for hedging interest and currency risks is shown. Using the VAR model, daily volatility was calculated, as well as possible fluctuations in exchange rates and interest rates. After the analysis, a conclusion was made and substantiated on the choice of the most effective hedging instrument.