THE DIVERSIFICATION BENEFITS OF INCLUDING COMMODITIES AND GOLD IN INVESTMENT PORTFOLIOS

Abstract

The purpose of this paper is to analyze diversification effects achieved through investments in commodities and gold on the example of traditional portfolios consisting of stocks and bonds. For this purpose, the correlation coefficients, risk levels, and return rates have been calculated based on data for 2010–2025 that represent the global market indicators. It was found out that gold is a good asset hedge that has a low or even negative correlation with stocks. Commodity assets additionally help reduce risks because of different economic factors driving their price.

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DOI

10.5281/zenodo.19974981

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