Can anyone point me in a direction (research paper, books, ..) which developes a framework/strategy for hedging currency exposure for an international bond portfolio?

This paper finds optimal hedging ratios for multi country portfolios, but I want to utilize correlation between the asset returns to optimize the hedging strategy. What i'm working with is an asset return (log difference of prices) timeseries $x_{n,t}$ and a fx carry return for each foreign currency where the carry trade is long foreign and short domestic currency $c_{t, n}$.

I hope my question makes any sense, if not ask me!


I found what I was looking for. I'm going ahead with cointegration analysis, of the timeseries, where you analyze the common co-integration trend, to optimize hedging.

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