Portfolio management is the art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return. Hedging is a strategy designed to reduce the risk of adverse price movements in an asset. Investors use this strategy when they are unsure of what the market will do.

There are several hedging strategies that investors can use to reduce their exposure to risk. Some of these strategies include diversification, short selling, options trading, and futures trading.

I wrote about this topic in the master's degree and the connection was high and the impact was great

You can use R

This article should give you some direction -

Kroner, K. F., & Sultan, J. (1993). Time-varying distributions and dynamic hedging with foreign currency futures. Journal of financial and quantitative analysis, 28(4), 535-551.