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Mango2Juice
Apr 28, 2020 9:20 AM

Correlation Matrix 

Euro Fx/Australian DollarFXCM

Description

In financial terms, 'correlation' is the numerical measure of the relationship between two variables (in this case, the variables are Forex pairs).
The range of the correlation coefficient is between -1 and +1. A correlation of +1 indicates that two currency pairs will flow in the same direction.
A correlation of -1 indicates that two currency pairs will move in the opposite direction.

Here, I multiplied correlation coefficient by 100 so that it is easier to read. Range between 100 and -100.


Color Coding:-
The darker the color, the higher the correlation positively or negatively.

Extra Light Blue (up to +29) : Weak correlation. Positions on these symbols will tend to move independently.
Light Blue (up to +49) : There may be similarity between positions on these symbols.
Medium Blue (up to +75) : Medium positive correlation.
Navy Blue (up to +100) : Strong positive correlation.

Extra Light Red (up to -30) : Weak correlation. Positions on these symbols will tend to move independently
Light Red (up to -49) : There may be similarity between positions on these symbols.
Dark Red: (up to -75) : Medium negative correlation.
Maroon: (up to -100) : Strong negative correlation.
Comments
chart_laboratory
thank you for idea.
NAK1987
This helped my code abilities quite a bit , thank you .
enric_vie
And i think this must be a mistake:
//Label_Head_Row7 = function_label(85,header_sym07,0.40,0)
this should be correct:
Label_Head_Row7 = function_label(85,header_sym07,0.40,0)

But then there are too many drawing (error)

Do you have a soloution maybe?
enric_vie
thank you thank you thank you!!
nanoha787
Hello, I'm always grateful for the opportunity to use your site. I'm sorry but The script is no longer usable. Could you please fix it?
nguyentuannam
Hello system author, the notification system is not working, please fix it, thank you very much. ♥️
Dao_De_Trading
Doesn't seem to work anymore...
bondnuetron
Absolutely fantastic piece of work! Only if there was a option for many more custom symbols addon.
vensonom
Great Indicator, can similar logic be used for corelation between Indexes, VIX, DXY, etc ?
tuanlm
thanks you
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