RT Journal Article SR Electronic T1 “Black Gold”—Trading Crude Oil for Greater Portfolio Efficiency JF The Journal of Alternative Investments FD Institutional Investor Journals SP 44 OP 50 DO 10.3905/jai.2004.439643 VO 7 IS 2 A1 Mark S Rzepczynski A1 Cengiz Y. Belentepe A1 Wei Feng A1 Philip Lipsky YR 2004 UL https://pm-research.com/content/7/2/44.abstract AB Commodity markets have proven to be a significant portfolio diversifying asset. However, little work has been conducted as to the statistical significance of this addition. We compare the addition of a commodity index to a traditional portfolio of stocks and bonds against the alternative of adding crude oil futures to serve as a commodity diversifier. We find that the value of such a simplification may be significant. By reducing the number of commodities used to gain portfolio diversification, investors may gain liquidity and flexibility. We run a similar test for gold which has been considered a key commodity diversifier during the inflationary periods of the 1970s and 1980s.