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Let's say the commodity you are talking about is gold, I know it's possible to work out the correlation coefficient of stocks with the price of gold as I have done it before on the entire stock market. That's when I found out that gold producers have the highest degree of negative correlation with the main indices. I wasn't actually even looking ...


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An alternative way to short a security is to create a Synthetic Short using its options, if they exist. This strategy utilizes two option positions. A short call is sold and the proceeds are used to buy a long put, both with the same strike and expiration. This combination has a similar risk and reward to shorting the underlying with the difference being ...


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Simple answer: You can't eliminate the roll yield effect. But I'd say that futures performance is already "mostly" driven by moves in commodity spot prices, since these tend to be larger than the cost-of-carry contributions (e.g., a commodity easily moves 5% up or down in a month whereas cost of carry is a fraction of a percent per month). The normal case ...


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There are "optimum yield" commodity indexes, that choose which dated futures contract to roll-into, that ETF's can license: https://index.db.com/dbiqweb2/servlet/indexsummary?redirect=benchmarkIndexSummary&indexid=91400&currencyreturntype=USD-Local&rebalperiod=2&pricegroup=STD&history=4&reportingfrequency=1&returncategory=TR&...


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An etf or fund that had to physically store and redeem a wide range of commodities would be both extremely expensive and completely impracticable in many cases. Are you just going to buy and hold physical pork bellies or orange juice for a decade for example? Who is going to buy 10 year old frozen foodstuff with a dubious storage history when you want to ...


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