# Framework for hedging fx and utilizing correlation between asset returns

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!