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lets say that I am just a humble corn farmer and Im expecting to harvest my corn at the end of the summer but one thing I dont want to do is incur the risk that the price of corn changes drastically from now until the time that I harvest it so what I want to do is put in a hedge that I can lock in the price of my corn today so I dont have to worry about that price risk over time so lets say I go to a Futures exchange and then I go to find a Futures Contract on corn to offset and hedge my position with but for whatever reason theres no Futures Contract for corn The Exchange just doesnt have it so what Ill have to do is go look at other contracts of different Commodities and find one with the highest correlation to Corn so lets say I went and did that I used CME and I found that soybeans are the commodity that have the closest correlation of price movements to corn so I go and I find the last 10 months of data on changes in the prices of corn and then I also find over the last 1