Predicting Stock Markets with Commodities - An Empirical Study on the Nordic Market
This study examines if commodity indices can be used to predict stock index returns on the Nordic financial markets. With a forecast period between 2000 and 2016, the study is conducted with an Ordinary Least Squares method to predict both in-sample and out-of- sample. The results indicate that the Baltic Dry Index and the London Metal Exchange Index are the best predictors of monthly stock return