Price ratio between copper and aluminium

The graph illustrates the development of the price ratio between copper and aluminum from 2017 to 2024. When this ratio increases, it means that copper is relatively more expensive compared to aluminum. Conversely, when the ratio decreases, it indicates that copper is relatively cheaper, or that aluminum is strengthening its position in the market.


Towards the end of the period, the graph shows a decline in the ratio, suggesting that the price of copper is falling more than the price of aluminum, or that aluminum is experiencing a relative price increase. If this trend is expected to continue, a potential investment strategy could be to sell copper futures and buy aluminum futures. This approach aims to take advantage of a continued reduction in the price ratio, with the expectation that aluminum will perform better than copper in the near future.


On the other hand, if one believes that the ratio will reverse and begin to rise again, with copper strengthening relative to aluminum, it might be profitable to buy copper futures and sell aluminum futures.

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