International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

DIVERSIFICATION BENEFITS FROM INVESTING IN COMMODITY SECTOR: THE CASE OF PRECIOUS METALS, INDUSTRIAL METALS & AGRICULTURAL PRODUCE
Akash Dania

Abstract
This paper explores benefits from investing in the commodity market by investigating the nature of the relationship between commodity market returns and stock market returns. Using Vector Auto Regression (VAR) we examine interdependence among Precious Metals, Industrial Metals, Agriculture Produce and equity market returns. Results suggest commodity market returns and equity market returns have little or no significant positive interdependence, thereby signaling diversification benefits from investing in the commodity sector.

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