The information on this site is not directed at residents of countries where its distribution, or use by any person, would be contrary to local law or regulation. The calculation of the correlation on this site uses the standard formula known as the "Pearson coefficient of correlation". Oanda Japan., Ltd. Correlation Coefficient, action forex elliott analyse des vagues correlation is computed into what is known as the correlation coefficient, which ranges between -1 and. A correlation close to 0 shows that the movements in the two currency pairs are not related.
Currency Correlation Explained
Correlation measures the relationship existing between two currency pairs. This is for general information purposes only - Examples shown are for illustrative purposes and may not reflect current prices from oanda. How is it calculated? If the correlation is 0, the movements between two currency pairs are said to have uh zero or NO correlation, they are completely independent and random from each other. . For example, it enables us to know whether two currency pairs are going to move in a similar way or not. Financial Service Guide (FSG), Product Disclosure Statement PDS, Account Terms and any other relevant oanda documents before making any financial investment decisions. Management of risks, it may be important to know whether the open positions in a portfolio are correlated. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. We have no idea how one pair will move in relation to the other.