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Currency Pair Correlation |
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Fri, 21 Mar 2008 06:53:14 MDT
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Written by Mataf
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Currency Pair Correlation
The following tables represent the correlation between the various parities of the foreign exchange market (forex).
The correlation coefficient highlights the similarity of the movements between two parities.
- If the correlation is high (above 80) and positive then the currencies move in the same way.
- If the correlation is high (above 80) and negative then the currencies move in the opposite way.
- If the correlation is low (below 60) then the currencies don’t move in the same way.
The correlation index are calculated on the daily and hourly data.
Correlation Pair Vs Market
In this part you will be able to have a total sight of the correlation of a pair versus the market. You must select the parity you want to analyse then to give the number of points on which the correlation will be calculated and finally to select the basket of pairs.
The result is given with Radar plots representing the hourly and daily correlation. More the points are located outside more the correlation is strong. In the event of negative correlation you will see appearing a sign "-" in front of the name of the parity.
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