Risk management and hedging
Risk management is an essential task for buyers and sellers of energy in futures markets, bilateral contracts or PPAs. The risk of the product portfolio must be kept under control and managed effectively.
Hedging is essential for reducing market price risk on the product portfolio. Through hedging, losses arising from adverse market price movements are reduced or eliminated.
It is very useful for agents to receive alerts to identify the best time to buy or sell an energy product in futures markets.
Mid-term and long-term forecasting services with associated probabilities are essential inputs for risk assessment.
At AleaSoft, we have price forecasting reports for Europe’s main electricity markets, which are essential inputs for assessing portfolio risk and for identifying hedging opportunities.
- Mid-term forecasting reports with distributions of possible future prices and their associated probability, with a forecast horizon of one to three years.
- Long-term forecasting reports with confidence bands at different percentiles, with a forecast horizon of five to thirty years.
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Risk management and hedging
Risk management is an essential task for buyers and sellers of energy in futures markets, bilateral contracts or PPAs. The risk of the product portfolio must be kept under control and managed effectively.
Hedging is essential for reducing market price risk on the product portfolio. Through hedging, losses arising from adverse market price movements are reduced or eliminated.
It is very useful for agents to receive alerts to identify the best time to buy or sell an energy product in futures markets.
Mid-term and long-term forecasting services with associated probabilities are essential inputs for risk assessment.
At AleaSoft, we have price forecasting reports for Europe’s main electricity markets, which are essential inputs for assessing portfolio risk and for identifying hedging opportunities.
- Mid-term forecasting reports with distributions of possible future prices and associated probabilities with a forecast horizon of one to three years.
- Long-term forecasting reports with confidence bands at different percentiles with a forecast horizon of five to thirty years.
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Accompanied by experts in the energy markets
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27 years of experience as forecasting leaders in the energy sector
We provide forecasts for all European markets
Hybrid forecasting model based on neural networks, regression and SARIMA model
Strategic consulting for the purchase and sale of energy and energy assets
27 years providing quality forecasts
November 2010 forecast of Spanish electricity market prices. The graph shows the accuracy of the forecasts and confidence bands. An important point to note is that price oscillates around the expected value. This characteristic will continue in the future, which is why the quality of the forecasts and associated probabilities is important.