Tuesday, April 6, 2010

How to Properly Diversify Investments in Commodity ETFs

Here are the correlations for all commodity ETFs in Q1 2010, covering the period January 4 to March 31. This is a our quarterly update on correlations (we also do monthly updates).

You can track live all commodity ETFS here.



For proper diversification what I look for are uncorrelated stocks. Those are shown in bold above, and their values are close to zero. You want to stay awy from green or red.

These are some of the best uncorrelated ETFs and ETNs:

  • BAL and DBC, DJP, LD
  • COW and DBC, DJP,
  • JJT and AGF, DAG
  • RJZ and AGF
  • UBC and DJP
  • SGG and GSG, RJI
  • JJS and JJU, FJN, RJZ
  • HIB and RJN
  • SGG and UCI

ETF and ETN names:



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