You wish to hedge an investment in Zirconium using futures. Unfortunately, there are no futures that are based on this asset. To determine the best futures contract for you to hedge with, you run a regression of daily changes in the price of Zirconium against daily changes in the prices of similar assets which do have futures contracts associated with them. Based on your results, futures tied to which asset would likely introduce the least basis risk into your hedging position?

Change in price of Zirconium = α + β (Change in price of Asset)

Asset	α	β	R²
A	1.25	1.03	0.62
B	0.67	1.57	0.81
C	0.01	0.86	0.35
D	4.56	2.30	0.45