CROSS-CORRELATION ANALYSIS OF FINANCIALIZATION WITHIN INTERNATIONAL MAIN AGRICULTURAL COMMODITIES MARKETS

The financialization process involving commodity markets fueled controversial issues among policy-makers, practitioners and scholars about spillover effects on the price levels, and inherent consequences on the whole economy. Within such a context, agricultural commodities markets are not an exception. This paper is the third “episode” of a wider proposed analysis, wherein a cross-correlation function (ccf) is applied to investigate the potential lead-lag relationship between traditional financial assets (Stocks) and commodities (entered about over the past twenty years as a popular asset class within international portfolio investors). Data pertaining some industrialized Countries (Germany, United Kingdom and United States) as well as some important developing Countries (Brazil, China and India) are processed to understand if financial management strategies involving agricultural index investments could really have affected commodities price dynamics.