Hedge Strategy Analysis and Financial Analysis of Volkswagen

Yuqi Zheng

doi:10.54254/2754-1169/4/2022971

Research Article

Open access

Published on 21 March 2023

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Zheng,Y. (2023). Hedge Strategy Analysis and Financial Analysis of Volkswagen. Advances in Economics, Management and Political Sciences,4,592-598.

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Hedge Strategy Analysis and Financial Analysis of Volkswagen

Yuqi Zheng *^,1,

¹ Queen Mary University of London, Mile End Road, London E1 4NS, UK

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/4/2022971

Abstract

Good hedging strategies need to thoroughly analyze the financial situation, risks, and market changes faced by the company, and then make reasonable choices based on the actual situation. After this article analyzing various financial indicators of Volkswagen, it can be found that the stock price of Volkswagen fell to the bottom in 2020, then quickly recovered in 2021 and reached a peak in the observation period. This includes market factors such as Covid-19 and price fluctuations of raw materials, the recovery of Volkswagen’s profits in 2021, and the hedging strategies like using interest rate derivatives made by Volkswagen Group in 2020. Although this article concludes with some shortcomings of its hedging strategies, overall, this company's hedging strategies are still very instructive, and in the future, it is promising to propose effective, value-conscious hedging strategies to transform the company's risks into opportunities to increase shareholder’s value so that the company can be more flexible to face some risks.

Keywords

Hedge, Risk, Financial

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References

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Cite this article

Zheng,Y. (2023). Hedge Strategy Analysis and Financial Analysis of Volkswagen. Advances in Economics, Management and Political Sciences,4,592-598.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅱ

Conference website: https://www.icemgd.org/

ISBN：978-1-915371-17-1(Print) / 978-1-915371-18-8(Online)

Conference date: 6 August 2022

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.4

ISSN：2754-1169(Print) / 2754-1177(Online)

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