Commodity price index

Commodity price index

A commodity price index is a fixed-weight index or (weighted) average of selected commodity prices, which may be based on spot or futures prices. It is designed to be representative of the broad commodity asset class or a specific subset of commodities, such as energy or metals.

The constituents in a commodity price index can be broadly grouped into the following categories:

  • Energy
  • Metals
  • Base Metals
  • Precious Metals
  • Agriculture
  • Grains
  • Softs
  • Livestock

Investors can choose to obtain a passive exposure to these commodity price indices through a total return swap. The advantages of a passive commodity index exposure include negative correlation with other asset classes such as equities and bonds, as well as protection against inflation. The disadvantages include a negative roll yield due to contango in certain commodities, although this can be reduced by active management techniques, such as reducing the weights of certain constituents (e.g. precious and base metals) in the index.

Indices

Articles

External links

Commodity price index at the Open Directory Project


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Commodity Channel Index — The Commodity Channel Index (CCI) is an oscillator originally introduced by Donald Lambert in an article published in the October 1980 issue of Commodities magazine (now known as Futures magazine). Since its introduction, the indicator has grown… …   Wikipedia

  • Christmas Price Index — True Cost of Christmas, 1984 2009 Christmas Price Index ( …   Wikipedia

  • price index — an index of the changes in the prices of goods and services, based on the prices of the same goods and services at a period arbitrarily selected as a base, usually expressed as 100. [1885 90] * * * Measure of change in a set of prices, consisting …   Universalium

  • Commodity Channel Index - CCI — An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset s price, a… …   Investment dictionary

  • wholesale price index —  measure of changes in the prices charged by manufacturers and wholesalers. Wholesale price indexes measure the changes in commodity prices at a selected stage or stages before goods reach the retail level; the prices may be those charged by… …   Universalium

  • consumer price index — an index of the changes in the cost of goods and services to a typical consumer, based on the costs of the same goods and services at a base period. Abbr.: CPI Also called cost of living index. [1945 50] * * * ▪ economics Introduction… …   Universalium

  • price index — noun Date: 1886 an index number expressing the level of a group of commodity prices relative to the level of the prices of the same commodities during an arbitrarily chosen base period and used to indicate changes in the level of prices from one… …   New Collegiate Dictionary

  • U.S. Producer Price Index — The official measure of producer prices in the US is called the Producer Price Index (PPI). It measures average changes in prices received by domestic producers for their output. The PPI was known as the Wholesale Price Index, or WPI, up to 1978 …   Wikipedia

  • Consumer price index by country — Contents 1 Argentina 2 Australia 3 Belgium 4 Canada …   Wikipedia

  • Producer Price Index (India) — The Indian Wholesale Price Index (WPI) was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index (PPI) in 1978. The Wholesale Price Index (WPI) was the most widely used price index in India. It… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”