The Risks of Commodity Investing

This chapter will cover investing in commodities through futures contracts.

Author(s) :

Hilary Till, Joseph Eagleeye

Hilary Till* and Joseph EagleeyeCo-Founders, Premia Capital Management, LLC* Research Associate with the EDHEC Risk and Asset Management Research Centre

It will note the unique sources of risk and return for such investments. We will also discuss the factors that one should take into consideration before deciding upon how much of their portfolio should be in commodities. We will note how an investment in commodities can be used as either a diversifier for a traditional portfolio or as a source of returns, depending on the market environment. Finally, we will argue that some of the considerations that apply to equity investing are also relevant for commodity investing.
The Risks of Commodity Investing...
(-1.00 B)
Type : Working paper
Date : le 07/08/2006
Extra information : Pour plus d'informations, nous vous prions de vous adresser à Joanne Finlay, Direction de la recherche de l'EDHEC [] Les opinions exprimées sont celles de l'auteur et n'engagent pas la responsabilité de l'EDHEC.
Research Cluster : Finance

See Also

Mr. Edouard Philippe, the France’s Prime Minister, on EDHEC’s Lille campus
- 23-02-2018
In front of over 1,300 EDHEC students, France’s Prime Minister Edouard Philippe...
- 23-02-2018
February 23, EDHEC Business School organizes the Team France Export, in...
Assets replicating Scientific Beta’s multi-factor indices reach USD 25bn
- 22-02-2018
Scientific Beta, the smart beta index provider offshoot of EDHEC-Risk Institute, has...
EDHEC Named France National Champions of the KPMG International Case Competition
- 20-02-2018
Impact Consulting, a team of four, EDHEC M1 Business Management students, are national...