Very good source. I'm really surprised by some of the correlations, however... Natural gas and euro-dollar have a -85% correlation, whereas natural gas and crude are only 17% correlated? Anyone make sense of that?
I only trade Coffee/eurodollar and Silver/Cotton spreads. They both have more than 90% correlations for obvious reasons.
Acres are relatively static each year and thus the " fight for acres" via new crop values. A relatively safe arguement. Inverted spreads distort relative new crop values, however. Regards,local
1) Natural gas and eurodollars can be randomly, strongly, inversely, correlated during the interval you're looking at. 2) Natural gas is more of a domestic (USA) commodity. It "adheres" to its fundamentals more closely. Crude oil is more international in scope and driven by excess speculation.