Correlation suggests ‘return to normal’ for commodities

Commodities are being increasingly driven by market fundamentals, say analysts, forcing investors to search harder for returns

Commodity correlation breaking down, say analysts

Commodities have resoundingly de-correlated from equity markets since early 2013, and are now being much more firmly driven by market fundamentals, according to market participants and analysts.

Correlations between commodities and currencies, and commodities and equity markets – as represented by the S&P 500 index – have both dropped sharply over the past year, notes a Connecticut-based commodity hedge fund manager.

“If you look at the correlation between commodities and various different