The Proper Investments in Commodity ETFs

Here are the correlations of commodity ETFs and ETNs for all days of January and Febuary 2010.

Please see our posts yesterday on the correlations of stocks and global ETFs for explanations.


(please click to enlarge)

As can be seen, the chart is also a sea of green, which is a very bad thing for diversification. What we need for diversification are totally uncorrelated stocks.

Some of the best uncorrelated pairs are shown below and included some very popular names such as COW and DBA:

• SGG and DJP, DYY, GSG, JJG,


• COW and PWND, JJS, JO


• BAL and DAG, DBA, FUD
  
  

For your convenience, these are the ETF and their names:

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).