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 Correlation Matrix?
A correlation matrix shows how currency pairs move relative to each other. Correlation ranges from +1 (perfectly correlated, move together) to -1 (inversely correlated, move opposite). Zero means no relationship.
Understanding correlations is essential for risk management. If you trade two highly correlated pairs in the same direction, you're essentially doubling your risk. Use negative correlations for hedging.
Key Features
- Live MT4 data-driven correlations
- Multiple time periods (5m to 30d)
- Color-coded matrix visualization
- Top 10 major and minor pairs
- Interactive pair selection
- Real sample data point counts
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.