portfolio convexity

[daveyc18]

is it possible for a portfolio to have different convexities after certain points?
e.g., portfolio 1 has greater convexity than portfolio 2 from 0% to 10%, but after 10%, portfolio 2 has greater convexity than portfolio 1

 

[S2000magician]

Absolutely.
But I think that you’re not asking the full question you want answered.
For example, can portfolios 1 and 2 have markedly different prices for different yields?

 

[daveyc18]

S2000magician wrote:
Absolutely.
But I think that you’re not asking the full question you want answered.
For example, can portfolios 1 and 2 have markedly different prices for different yields?

here;s my situation….from, say, 0% to 4%…… A > L…after that A < L …let’s say 4% is the breakeven point
graphically,
i was thinking of if assets were simply MORE convex than liabilities - -> after 4% …A should still > L ….correct?
But since it’s the opposite situation….different convexity after certain yields
another question…so i suppose even if durations of A and L match, you’re not completely hedged due to convexity. how would one hedge convexity?