That is an odd question, I know. Bear with me...

There appears to be an abune of the super hedging egy!!!! Type threads which are'hedging' eur/usd or gbp/usd contrary to usd/chf as a result of high correlation. Every time I read one of these kind of posts, the purpose is constantly made that you are basically trading the eur/chf or and that it's only a pseudo hedge so I dismissed the concept.

Well, I stumbled on a single post where they said that there's a small interest differential between the hybrid cross pair as well as the real pair so I thought I'd do some digging to see if I could do some kind of arbitrage, and sure enough there might be a method. I broke out my weekly charts for gbp/usd, usd/chf and gbp/chf and backtested for a month or two and noticed that not only are the interest rates distinct, there were uncontrolled price differentials overly - sometimes amounting to hundreds of pips!

Thus, here are my questions:

1. Why?
If all of the currencies in your basket are zeroed out contrary to themselves, how do the p/l be 0??

2. Has anyone have some suggestions about how best to use this info and looked at this before?
It feels like there needs to be a motive for this, and if that's the case maybe it's enough info to have a small advantage when you see it happening. Overall the 3 way hedge's p/l is near 0, so it will be a good idea to purchase a set when it's out of whack and wait for the correction?

Any ideas?

Thanks!