Using the Bloomberg HRA Regression screen, estimate the relation between two commodities in the same category (e.g., precious metal). Load your selected spot prices (e.g., SLVR for the silver), and then go to the HRA screen for the regression. On the HRA screen, enter the other commodity as the independent variable in the amber box (e.g., XAU for gold) and select the time period and periodicity (e.g., daily).

a. Comment on the regression results and the relation (beta).

b. Explain how you would form a bullish and bearish intercommodity spreads with the futures contracts on the underlying commodities.