This　paper　introduces　a　new　incomplete　index　and　establishes　a　new　optimal　hedging　model.　We　find　that　when　the　market　micro-noise　is　perfectly　negatively　correlated　with　the　return　of　futures　market,　market　incompleteness　depends　on　the　relative　level　of　noise　volatility.　Especially　when　noise　volatility　is　less　than　the　futures　market　yield,　noise　volatility　will　be　offset　by　return　volatility.　As　a　result,　complete　optimal　hedging　model　emerges.　As　an　aside,　it　is　interesting　to　note　that　as　different　conditional　variances　derived　from　different　volatility　models　being　applied,　the　hedge　performance　tends　to　be　basically　consistent　with　subtle　difference:　DCC-GARCH　model　is　more　likely　to　execute　the　hedging　with　1:1　ratio,　while　other　multivariate　GARCH　models　would　give　a　hedging　ratio　with　greater　probability　less　than　1:1　and　is　less　likely　to　be　a　perfect　hedge.　Therefore,　we　believe　that　a　simpler　econometric　model　might　produce　better　empirical　results.　©　2014　Elsevier　B.V.