COMMODITY CORRELATION CAUSES HEADACHE FOR INVESTORS

摘要

The reputation of commodities as a diversification tool has taken a battering of late, as prices have seemingly moved up and down in intractable harmony. However, there is a little agreement over whether high levels of correlation are the new normal, or a symptom of the financial crisis that will fade with time.Correlation in commodities is manifested in one of two ways - either as price co-movements between individual commodities, or against other asset classes, such as bonds and equities.