---
title: Hedging Turbulence Risk
url: https://www.ml-quant.com/papers/ssrn/5139437/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5139437
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5139437
featured: 2025-03-05
citations: unknown
topic: Derivatives & Volatility
---


# Hedging Turbulence Risk

A Chinese Financial Turbulence Index (FTI) developed using textual analysis and AI of news articles can negatively predict market returns, and a hedging framework incorporating firm characteristics related to financial resilience can effectively hedge against financial turbulence risk.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5139437
- Identifier: SSRN 5139437
- Released: 2025-02-15
- First featured: Quant Letter No. 87 (2025-03-05): https://www.ml-quant.com/issues/2025-03-05/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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