This paper studies the issues related to finite-period overseas investment, foreign exchange rate, and currency hedging by foreign exchange forward contract. It is demonstrated that foreign exchange rate should be as important as foreign asset as far as overseas investment decision is concerned and that the decision ought to be made by considering the two factors conjunctionally, rather than separately. In contrast to a common perception, foreign exchange forward is inadequate to deal with currency hedging in many actual situations, due to its notional mismatch, costly forward point, and implicit leverage in it. It is shown that correlation coefficient between financial variables like foreign asset and foreign exchange rate can be insufficient and even misleading in describing the eventual association between them thus a new empirical statistic is proposed to supplement correlation. Empirical results are presented for the equity market investment into three developed and four emerging market countries from Korean and the US investors’ standpoints.