TY - JOUR T1 - The Relation Between Return and Volatility in the Commodity Markets JF - The Journal of Alternative Investments SP - 54 LP - 62 DO - 10.3905/jai.2001.318998 VL - 4 IS - 1 AU - Daniel G. Giamouridis AU - Michael N. Tamvakis Y1 - 2001/06/30 UR - https://pm-research.com/content/4/1/54.abstract N2 - In this article, results indicate that the relation between return and volatility in the commodity markets is inverse of that observed in the stock markets. The implication is that if the commodity market returns are negatively correlated with those of traditional financial assets, the introduction of commodities in those portfolios may result in the diversification of risk. This may also allow fund managers to hedge their investment portfolios with commodities, thus avoiding the use of more complicated instruments such as options. ER -