CHAPTER-4 FINDINGS, RECOMMENDATIONS AND CONCLUSION

From the analysis, the researcher finds that:

4.1 FINDINGS 4.1.1 MCX: There is more total risk in steel compare to gold in all 6 months (2012) Total risk is high in steel compared to different years from the gold in 2012 (9.32. Steel has high market risk compared to crude oil silver in MCX (9.32) Market risk is high steel compared to various commodities in MCX. There is an overall positive correlation of returns of gold and steel in the market. It in It indicates that if the investors diversify the product between steel allows the risk is more, since it has the correlation. From this analysis of the study the price movement of the steel in indicates high trend compare to gold. Steel has made highest EMA of all the month from January to June. It doesnt have any negative value.

4.1.2 NCDEX: Total risk is higher in NCDEX compared to MCX. There is negative correlation of return of NCDEX market. It indicates that if investor
diversifies the product between MCX and NCDEX, since it has the correlation.

From the analysis of the study the price movement of MCX high trend comparing
NCDEX.

4.2 RECOMMENDATION Before making an investment, investor should conduct the economic, industry and market
analysis to know the present scenario as well as the future prospects which the investment decision should be based.

We observed from the study that NCDEX is volatile. Investors willing to bearing the high risk capacity, they can select for NCDEX. Those investor willing to bearing the low risk capacity, they can select MCX. Beta and correlation is best tools to understand risk involved and commodity status in
market. So it is advisable to investor they can study before entering into the market.

4.3 CONCLUSION
The study is based on A STUDY ON COMPARATIVE ANALYSIS IN COMMODITY TRADING - MCX AND NCDEX. by using various tools and techniques. Its operation is analyzed by using standard deviation and beta correlation. During the period of study it observed that the investor should be more aware and acknowledged about the risk and reward associated in trading with each commodity. A cleat picture of volatility of return and degree of market risk involved in the market has to be analyzed properly by the investor for better result. There is positive correlation of returns and price fluctuation in commodities. For a trading company like Coimbatore capital ltd., it is necessary to provide this type of awareness to the investors for the sustainability and profitability of the both parties.