Tables represents the
correlation between the various currency pairs
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.
This tool can be useful for determining your Tradig strategy
particularly in relation to the position sizing and risk management.
Example
If you have two currency pairs in your portfolio,
you may think that you have a diversified portfolio.
It this pairs have a high
correlation, Think again,
is in essence have two instance of the "same" currency.
- CT.lua
- (6.25 KiB) Downloaded 3600 times