This chart shows Bitcoin (candlestick chart) and the Correlation Coefficient between Bitcoin and the S&P 500 (white graph).
You can find the Correlation Coefficient between any two assets in seconds -- it's easy. First, head to Indicators & Strategies and then search for Correlation Coefficient. When you find it, click it, and a box will appear asking you to type in the asset you want to compare. Press Enter and the chart will calculate the correlation immediately.
Correlation Coefficients are important because they can show you how two assets are moving together. For example, are they moving in lockstep or in opposite directions? A correlation of 1 means a perfect positive correlation and a correlation of -1 means a perfect negative correlation.
We hope this quick guide helps you with your analysis. Please press like if you enjoyed it and write in the comments for other tips or tricks.
how to determine which length/ period to use for the correlation coefficient indicator? default is 20. whats the value it needs to be changed to on a 1m, 5m, 1h, 1d, 1w time charts ?