Risk-Return Analysis of Different Commodity Futures in Indian Derivative Market

Commodity Futures Trading in India had experienced an explosive growth, both in volumes and value over the years among all contracts. Till date, different studies were undertaken on the price volatility, stabilization, causality between futures and spot prices etc. Despite these, there is no consensus on the characteristics of return from the different kinds of commodity futures. This paper provides a comparative analysis of risk-return on different groups of commodity futures and the groups are Agricultural commodity futures, Metals, Energy and Oil & Oil related commodity futures. Thus the paper attempts to study the performance of these futures in the presence of risk-free assets and inflation.