PT - JOURNAL ARTICLE AU - Daniel G. Giamouridis AU - Michael N. Tamvakis TI - The Relation Between Return and Volatility in the Commodity Markets AID - 10.3905/jai.2001.318998 DP - 2001 Jun 30 TA - The Journal of Alternative Investments PG - 54--62 VI - 4 IP - 1 4099 - https://pm-research.com/content/4/1/54.short 4100 - https://pm-research.com/content/4/1/54.full AB - 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.