In the financial markets, traders never stop looking for new opportunities to gather insights from data that will assist them in predicting price action and handling risk. One very useful yet often disregarded asset in a trader’s toolkit is the correlation coefficient. It is indispensable in gauging how prices of commodities will affect trading activities in other asset classes such as equities, currencies, and even crypto. In this article, we’ll discuss thoroughly what correlation coefficient is, its mechanisms, and how traders can use it to gauge and react to shifts in commodity prices. Regardless of whether you’re an experienced trader…