Correlation Matrix
See how currency pairs move together. Use correlations to diversify risk and find trading opportunities.
How to Use Correlations
Understanding Values:
- +100% = Pairs move exactly together
- 0% = No relationship
- -100% = Pairs move exactly opposite
Trading Tips:
- Avoid taking same-direction trades on highly correlated pairs (doubles risk)
- Use negative correlations to hedge positions
- Correlations can change over time
What is a Currency Correlation Matrix?
A currency correlation matrix shows how different currency pairs move in relation to each other. Correlation values range from +1 (move identically) to -1 (move opposite).
Understanding correlations helps you avoid doubling risk on correlated trades, find hedging opportunities, and build a diversified trading portfolio.
Key Features
- Real-time correlation data
- Multiple timeframe analysis
- Color-coded matrix display
- Major and minor pairs
- Customizable pair selection
- Historical correlation reference
Frequently Asked Questions
Currency correlation measures how two pairs move relative to each other. +1 means they move identically, -1 means they move opposite, and 0 means no relationship. EUR/USD and GBP/USD are typically highly correlated.
Avoid trading highly correlated pairs in the same direction—you're doubling risk. Use negative correlations to hedge positions. Also use correlations to confirm trade ideas across related pairs.
Yes, correlations shift based on market conditions, central bank policy, and risk sentiment. Check correlations across multiple timeframes. What's correlated on daily may differ on hourly charts.
When USD is the quote currency (EUR/USD), pairs move opposite to when USD is the base (USD/JPY). A strong dollar makes EUR/USD fall but USD/JPY rise—hence their typical negative correlation.