Egozcue, MartinFuentes García, Luis2024-12-022024Egozcue, M., & Fuentes García, L. (2024). Optimal Bounds and Practical Insights: Cantelli’s Inequality Revisited. Journal of Statistical Theory and Practice, 18(4), 59. https://doi.org/10.1007/s42519-024-00410-6http://hdl.handle.net/2183/40454Versión aceptada de: https://doi.org/10.1007/s42519-024-00410-6[Abstract:] In this paper, we establish three upper bounds of Cantelli’s inequality type, out of which two are optimal, improving upon previous results, including those derived from Cantelli’s and Hoeffding’s inequalities. We demonstrate the practical relevance of our research by analyzing exchange-rate risk in the real estate market. Specifically, we develop an effective hedging strategy that enables firms to safeguard their profits in the case of currency mismatches between revenue and costs. By effectively modeling the dependence structure of revenue and costs, we enhance the precision of our bounds, as demonstrated through simulation data.engThis version of the article has been accepted for publication, after peer review and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s42519-024-00410-6Cantelli’s inequalityUpper boundsFinancial riskExchange rate riskCopulasjournal articleopen access10.1007/s42519-024-00410-6