Correlation amongst Groups of Raw Materials in the Commodities Market
Author | : Roberto Araldi |
Publisher | : EGEA spa |
Total Pages | : 170 |
Release | : 2011-11-29T00:00:00+01:00 |
ISBN-10 | : 9788823811850 |
ISBN-13 | : 8823811856 |
Rating | : 4/5 (50 Downloads) |
Download or read book Correlation amongst Groups of Raw Materials in the Commodities Market written by Roberto Araldi and published by EGEA spa. This book was released on 2011-11-29T00:00:00+01:00 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the present period of uncertain and sluggish growth in the economic cycle, commodities markets are more than ever under scrutiny by financial analysts. The general up-trend in staple raw materials is due to factors that traditionally capture the interest of commodities investors. They alone do not explain the extraordinary recovery characterizing prices of the main commodities. Another fundamental element explaining this phenomenon is the robust continuous purchases made by high-growth nations such as China and India. Another possible explanation states that correlations between different raw materials exist. The primary goal of this book is therefore to provide a detailed analysis of commodities markets. By focusing on existing correlations amongst various raw material groups the aim is to demonstrate that the commodities marketÅs recovery over the last year or so is strictly related to the increase in petroleum prices based on the spill-over effect. Furthermore, the book includes an investment simulation based on the correlation analyses conducted in the main body of the study. This provides empirical data to sustain the strategies and thesis herein contained.