Commodity Correlation
Commodities
Definition
The statistical relationship between commodity prices and other financial instruments, economic indicators, or currencies, helping investors understand how commodity movements affect broader markets and inflation expectations.
Key Points
- Often negatively correlated with USD
- Positive correlation with inflation expectations
- Energy commodities affect transportation costs
Examples
Oil prices rising with energy stock performance
Gold negative correlation with real interest rates
Quick Info
Category
Commodities
Related Topics
inflation hedge
correlation analysis
resource stocks
Related Terms
Explore related financial concepts