5-245.2 TRENDS AND PROJECTIONSThis section presents information on futures prices forvegetable oils, and how recent trends in consumption andproduction may be useful in predicting future supply anddemand for vegetable oil.5.2.1 Futures PricesSoybean oil and some oilseeds are traded on the futuresmarket.
related diversification. A process that takes place when a business expands its activities into product lines that are similar to those it currently offers. For example, a manufacturer of computers might begin making calculators as a form of related diversification of its existing business.
In this article, I would like to address the question of how market participants can incorporate simple correlation analysis into their investment decision making process. Simply put, diversification is an investment approach that aims to combine different investments in order to reduce the overall risk in a portfolio. The underlying driver of the diversification effect is the correlation between returns of portfolio components.