Commodity Market: Analyzing Price Volatility Trend and Return from Diversified Portfolio Index

Abstract: This study embodies the research undertaken for the commodities futures price traded at MCX, India. We analyse the secondary data from MCX. The commodities are traded under various categories at MCX. The categories are Agri commodities, Base metals, Energy and Bullion. From each category, two commodities were selected. The historical volatility helps the investors in making investment decisions. For analysing the correlation of future price of commodity with economic parameters, data were downloaded from the Indian Ministry of Commerce and industry website. The Indian Ministry of commerce website published the data for India’s import, export, and consumption value. The period of the study was January 2013 to December 2022. The study further extended to the portfolio construction. The analysis and findings of the research help an investor to take the investment decision and guide how to use the commodities for the portfolio construction and maximize the returns. Keywords: MCX, Commodity market, returns from different index exchanges, price volatility EL Classification Number: G13, G14, C51