In the long run, Commodities are moving more in unison?

[crgarcia]

In the long run, Commodities are moving more in unison?

And will continue to do so in the foreseeable future?

Maybe speculators have begun to play key role in the last decade.
And they buy/sell a basket of futures in unison.
(Pretty much like they buy/sell a basket of stocks in unison, regardless of individual companies performance).

 

[JamesVU2000]

correlation is a massive problem for all asset classes and the world in general. the downside to globalization is when shit hit the fan there is nowhere to hide.

 

[crgarcia]

Quote from JamesVU2000:

correlation is a massive problem for all asset classes and the world in general. the downside to globalization is when shit hit the fan there is nowhere to hide.

So true, but this isn't changing anytime soon.

Best to follow the trend (when there's one).

 

[TraDaToR]

I noticed it in the grains this year. When one goes limit up/dn, there are better chances that others will do the same.

Oats and Rice are quite independant but there must be a good part of arb volume for wheat, corn and the soy complex . Charts look the same on most days.