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This sounds like quadratic hedging. If you have the return of the assets $r_X$ and $r_Y$ with negative correlation $\rho$ between the two (we could think of bonds and stocks) and more variance in one of them then the problem of weighting the two by $w$ is (assume zero expected returns for ease of presentation) $$ \text{risk} = E[(w r_X + (1-w) r_Y)^2] ...



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