Pace Global

Hedging Decision Protocol Simulator

Pace Global’s Hedging Decision Protocol Simulator (“Simulator”) is a web-enabled application that enables users to test various combinations of Hedging Decision Protocols (“HDPs”) across numerous commodity price scenarios.  The Simulator is a powerful management and hedge-strategy development tool which helps to rigorously examine the question: ‘How would my portfolio have performed with a given hedge strategy through a broad range of plausible market scenarios?’

  • Based on a modular design, with the core algorithms developed in MATLAB
  • Utilized to assess virtually unlimited variants of hedging strategies for utilities, industrials, and other energy companies that purchase natural gas, oil, and power as an input to its manufacturing operations, as a fuel stock for power generation, or to deliver directly to retail customers
  • Contains more than ten years of historical, actual market forward and settlement prices, as well as multiple, five-year simulated future price paths that include comprehensive forward and settled prices
  • Examines HDP combinations over the entire period of prices or over any select period
Pace Global