“…Many of these investors are using commodity futures as an investment vehicle for making strategic and tactical allocations. Strategic allocations of commodity futures are highly valued due to the benefits of the long-term equity-like returns, the diversification benefits, and the inflation hedging potentials (Bodie & Rosansky, 1980;Jensen, Johnson & Mercer, 2002;Erb & Harvey, 2006;Gorton & Rouwenhorst, 2006;Jaiswal & Uchil, 2016;2018a;2018b). In addition to the strategic asset allocations, commodity futures are used for tactical asset allocations to generate abnormal alphas as shown by previous studies (Erb & Harvey, 2006;Miffre & Rallis, 2007).…”