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Do Commodity Traders Herd?
Author(s) -
Adrangi Bahram,
Chatrath Arjun
Publication year - 2008
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.2008.00202.x
Subject(s) - herding , commodity , herd behavior , economics , aggregate (composite) , financial economics , geography , finance , materials science , forestry , composite material
We test for herding using data on aggregate trader positions for four commodities over 20 years. We show that while the positions of commodity traders are highly related, the relatedness falls short of herding. The cross‐commodity relatedness in trader positions is almost entirely explained by common demand and supply factors.