With the dollar offset method for checking the effectiveness of a hedging relationship, the results may contradict the actual economic reality. In this way, very small changes in the values can cause a hedging relationship to be classed as ineffective even though this is not borne out in reality (problem of small numbers).

The schleifer noise method allows you to circumvent the problem of small numbers. With this effectiveness test method, you enter a threshold value (in percent) to specify the highest amount that value fluctuations can reach without affecting the effectiveness valuation.

In addition to using a noise threshold value (NT), you can also specify a transition speed (s). The transition speed determines the transition of a hedging relationship from being effective to ineffective. The transition speed influences the transition area between the area where the threshold value dominates and the area where it is not influential. The greater the transition speed, the smaller the transition area.