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Correlation between currency pairs

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Jordi Bassaganas
3532
Jordi Bassaganas 2013.07.20 16:02 

Hello there,

I have found this calculator which tells you the correlation among currency pairs. Do you agree with the results it gives?

Thank you!, 

 

Forex Correlation
Forex Correlation
  • Forexticket
  • www.forexticket.co.uk
The following tables represents the correlation between the various parities of the foreign exchange market. 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...
phi nuts
2184
phi nuts 2013.07.20 16:10  
laplacianlab:

Hello there,

I have found this calculator which tells you the correlation among currency pairs. Do you agree with the results it gives?

Thank you!, 

 

Almost pretty much the same like article in MQL4 : Theoretical Basis of Building Cluster Indicator in Forex. Study how it calculate and you may understand something.
Theoretical Basis of Building Cluster Indicators for FOREX - MQL4 Articles
  • www.mql5.com
Theoretical Basis of Building Cluster Indicators for FOREX - MQL4 Articles: features of automated forex trading and strategy tester
Jordi Bassaganas
3532
Jordi Bassaganas 2013.07.20 16:29  
phi.nuts:
Almost pretty much the same like article in MQL4 : Theoretical Basis of Building Cluster Indicator in Forex. Study how it calculate and you may understand something.
Superb! I see that correlations is another field of study. So much things in automated trading systems.. Thank you!
TheMoneyWizz
8
TheMoneyWizz 2013.07.21 02:02  

Thanks a lot for pointing us to this currency calculator, lalacianlab.

I have always had that gut feeling that there HAD to be quite strong relations between the movements of some currency pairs, and it makes sense from a theoretical point of view too.

But even though I have been studying charts for ages (nope, I DO have better things to do, but this seemed quite important to find out), often enough skipping several hours of sleep over the matter,

I could never really put my finger on it.  But now that I found this, thanks to you, I have a good reference point and a good new basis to renew my study of this correlation phenomenon.

I strongly believe this can be something that can help us, traders, in the future, although we will never (to my impression) be able to really define this and transform it into a workable instrument

(meaning : I think we will never be able to perfect this that far that it can ensure us for a big percentage that our predictions based on these correlations are right.  As long as there is a NEGATIVE correlation

at any given moment, we will not be able to trust this enough, unless we are able to predict WHEN that correlation will be negative, and why).

It's a nice challenge to decipher this, but I feel it will never lead to more than a good exercise, but never to any decent kind of prediction tool.

Thanks anyhow.  I am glad I found this ;-)

phi nuts
2184
phi nuts 2013.07.21 03:23  
TheMoneyWizz:

Thanks a lot for pointing us to this currency calculator, lalacianlab.

I have always had that gut feeling that there HAD to be quite strong relations between the movements of some currency pairs, and it makes sense from a theoretical point of view too.

But even though I have been studying charts for ages (nope, I DO have better things to do, but this seemed quite important to find out), often enough skipping several hours of sleep over the matter,

I could never really put my finger on it.  But now that I found this, thanks to you, I have a good reference point and a good new basis to renew my study of this correlation phenomenon.

I strongly believe this can be something that can help us, traders, in the future, although we will never (to my impression) be able to really define this and transform it into a workable instrument

(meaning : I think we will never be able to perfect this that far that it can ensure us for a big percentage that our predictions based on these correlations are right.  As long as there is a NEGATIVE correlation

at any given moment, we will not be able to trust this enough, unless we are able to predict WHEN that correlation will be negative, and why).

It's a nice challenge to decipher this, but I feel it will never lead to more than a good exercise, but never to any decent kind of prediction tool.

Thanks anyhow.  I am glad I found this ;-)

Just use search in internet for currency correlation and you'll find plenty https://www.google.com/search?q=currency+correlation
Jordi Bassaganas
3532
Jordi Bassaganas 2013.07.21 11:40  
phi.nuts:
Just use search in internet for currency correlation and you'll find plenty https://www.google.com/search?q=currency+correlation
Thank you for the correlations formula!
Jordi Bassaganas
3532
Jordi Bassaganas 2013.07.21 11:45  
TheMoneyWizz:

Thanks a lot for pointing us to this currency calculator, lalacianlab.

I have always had that gut feeling that there HAD to be quite strong relations between the movements of some currency pairs, and it makes sense from a theoretical point of view too.

But even though I have been studying charts for ages (nope, I DO have better things to do, but this seemed quite important to find out), often enough skipping several hours of sleep over the matter,

I could never really put my finger on it.  But now that I found this, thanks to you, I have a good reference point and a good new basis to renew my study of this correlation phenomenon.

I strongly believe this can be something that can help us, traders, in the future, although we will never (to my impression) be able to really define this and transform it into a workable instrument

(meaning : I think we will never be able to perfect this that far that it can ensure us for a big percentage that our predictions based on these correlations are right.  As long as there is a NEGATIVE correlation

at any given moment, we will not be able to trust this enough, unless we are able to predict WHEN that correlation will be negative, and why).

It's a nice challenge to decipher this, but I feel it will never lead to more than a good exercise, but never to any decent kind of prediction tool.

Thanks anyhow.  I am glad I found this ;-)

I agree with you right now, predictions can't be made, but maybe some intervals of a given chart have been considered by the crowd in terms of its recent history, until the fundamental time comes.. Or so. Maybe you can put those correlation numbers in your EA's brain for taking something into account. I really don't know. Thank you.
Alain Verleyen
Moderator
31090
Alain Verleyen 2013.07.21 13:16  
phi.nuts:
Just use search in internet for currency correlation and you'll find plenty https://www.google.com/search?q=currency+correlation
The problem with most of these sites is that it never publishes how these correlations are calculated.
Sergey Golubev
Moderator
94493
Sergey Golubev 2013.07.21 14:08  
Just interesting indicator found : https://www.mql5.com/en/forum/7936#comment_549640
Indicators: TandemInstrument
Indicators: TandemInstrument
  • www.mql5.com
The indicator displays the charts of two symbols in one window.
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