
Dynamic gas models make for better hedges
Study highlights dwindling role of weather in market

Static models for natural gas prices are missing the tendency of the market to learn from experience, and better models could radically improve hedging and trading, according to forthcoming research. Gas prices in the US are significantly affected by storage levels and weather, generally measured as heating degree days, or HDD, and most predictive models depend on these variables. But, according to Matthew Brigida, an associate professor of finance at the State University of New York, by failing
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