Commodity Investing Risks

30 Pages Posted: 5 Aug 2015

See all articles by Hilary Till

Hilary Till

Premia Research LLC; EDHEC-Risk Institute; J.P. Morgan Center for Commodities, University of Colorado Denver Business School; Global Commodities Applied Research Digest

Joseph Eagleeye

Premia Research LLC

Date Written: May 5, 2003

Abstract

This paper will cover investing in commodities through futures contracts. 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.

Keywords: Commodity futures contracts, risks, source of returns, backwardation

JEL Classification: G1, G11

Suggested Citation

Till, Hilary and Eagleeye, Joseph, Commodity Investing Risks (May 5, 2003). Available at SSRN: https://ssrn.com/abstract=2639686 or http://dx.doi.org/10.2139/ssrn.2639686

Hilary Till (Contact Author)

Premia Research LLC ( email )

United States
312-583-1137 (Phone)
312-873-3914 (Fax)

HOME PAGE: http://customindices.spindices.com/custom-index-calculations/premia/all

EDHEC-Risk Institute

Nice
France

HOME PAGE: http://risk.edhec.edu/

J.P. Morgan Center for Commodities, University of Colorado Denver Business School ( email )

1475 Lawrence St.
Denver, CO 80202
United States

HOME PAGE: http://www.business.ucdenver.edu/commodities

Global Commodities Applied Research Digest ( email )

J.P. Morgan Center for Commodities
1475 Lawrence Street
Denver, CO 80202
United States

HOME PAGE: http://www.jpmcc-gcard.com/hilary-till

Register to save articles to
your library

Register

Paper statistics

Downloads
54
Abstract Views
457
rank
373,465
PlumX Metrics