Stock Diversification Through Commodity ETFs

With the end of the month we calculated the correlations of all commodity ETFs on the market. Correlations are extremely important for proper investment diversification. Stocks that are highly correlated, those whose  correlation values close to +1 or -1, do not provide sector diversification

Here are the values:

Please click to enlarge image.

Some of the best uncorrelated pair of commodity ETFs include:

• JO and AGF, DAG, GRN, GRU, JJA, JJT, SBG, UAG
• NIB and JJS, JO
• UBC and JS