Abstract Book of the 9th International Conference on Management, Economics and Finance
Year: 2025
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Hedge Funds: Solutions for Finding the Most Profitable Market Opportunities in Natural Gas Trading Amid High Volatility and Unsustainable Low Prices
Ivica Candrlic
ABSTRACT:
Natural gas markets have become increasingly volatile, driven by geopolitical crises, supply chain disruptions, and shifting global energy policies. This extreme price volatility, coupled with periods of unsustainable low prices, creates both risks and unique opportunities for hedge funds seeking high returns. This paper investigates how hedge funds develop and implement strategies to detect and exploit these market inefficiencies in natural gas trading. The study focuses on the integration of predictive analytics, alternative data sources, and machine learning models to anticipate price swings and supply shocks. Additionally, it highlights how disruptions in production and distribution networks amplify market imbalances, allowing funds to profit from short-term price dislocations. By combining fundamental, technical, and macroeconomic analysis, hedge funds are able to adapt to rapidly changing market conditions and gain a competitive edge. This research offers valuable insights into how hedge funds navigate unstable energy markets and turn volatility into profitable trading opportunities.
Keywords: disruption in production and distribution services, energy policies, market inefficiencies, unsustainable low market prices, volatility