Correlation Coefficient (CC) is used in statistics to measure the correlation between two sets of data. In the trading world, the data sets would be stocks, etf's or any other financial instrument. The correlation between two financial instruments, simply put, is the degree in which they are related. Correlation is based on a scale of 1 to -1. The closer the Correlation Coefficient is to 1, the higher their positive correlation. The instruments will move up and down together. The higher the Correlation efficient is to -1, the more they move in opposite directions. A value at 0 indicates that there is no correlation.

Read more about the Correlation Coefficient (CC).

Read more about the Correlation Coefficient (CC).

-Correlation Coefficient with Dynamic Average R (shows R average for the visible chart only, changes as you zoom in or out) -Label: Vis-Avg-R = Visable Average R -the Correlation Coefficient function for Pearson's R is taken from "BA🐷 CC" indicator by @balipour (highly recommended; more thorough treatment of R and other stats, but without the dynamic average) -I...

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Pearson correlation coefficient measures the linear correlation between two variables. It has a value between +1 and −1, where 1 is total positive linear correlation, 0 is no linear correlation and −1 is total negative linear correlation. It’s often denoted by r for sample correlation and ρ for population correlation. Note: Pearson Correlation only measures...

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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...

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Other available matrixes I found have a limited number of forex symbols. Consequentially, you need to keep switching them if you want to do a proper analysis. As a result of that, I produced my own currency matrix. Correlation studies relationships between different price charts. High correlation may be completely random in the short term, but it may signify a...

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This is a normalized correlation coefficient that can be used with any timeframe or symbol desired (found in the indicator settings). The normalization function makes the coefficient bound between 0-1. There is a subjective threshold at 0.80 where anything below the threshold tends to be higher risk in trading as opposed to above the threshold. Suggestions: -...

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I'm pleased to introduce this script in honor of the new array functions introduced to PineScript version 4.0. This update is a long time coming and opens the door to amazing scripting possibilities! Definition Named after Charles Spearman and denoted by the Greek letter ‘ ρ ’ (rho), the Spearman rank correlation coefficient is the nonparametric version of...

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This script calculates the covariance and correlation coefficient between two markets using arrays. Lookback: How many bars to perform the calculation on. Source: Price source to calculate the correlation on. Reference Market: The reference market to compare to the current market. It's a simple indicator, but very useful for determining how correlated your...

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Graph shows level of correlation between current source and another one and track current value of it. User can select source for comparison, graph period and number of candles for calculation, enter level of significal correlation (+-0.65 by default). Grapf contains 4 plots: Correlation - current level of correlation, Zero line , +Corr_level - minimum level of...

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Introduction The correlation oscillator is a technical indicator that measure the linear relationship between the market closing price and a simple increasing line, the indicator is in a (-1,1) range and rise when price is up-trending and fall when price is down-trending. Another characteristic of the indicator is its inherent smoothing which provide a noise...

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The Spearman Rank Indicator was created by John Ehlers (Stocks and Commodities July 2020 pg 6) and this works well as a trend confirmation indicator. This is obviously his take on the Spearman Ranking Correlation and make sure to let me know what you think! Buy when the line turns green and sell when it turns red. Let me know if there are any other indicators you...

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The Optimal Weighted Moving Average was created by Thomas Hutchinson and Peter G. Zhang, Ph.D. (Stocks & Commodities V. 11:12 (500-505)) and it is very similar to a classic weighted moving average but it uses the correlation between the input and the optimal weighted moving average output to use as the weights. Buy when the line turns green and sell when it turns...

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This is my "Pine-based" correlation() function written in raw Pine Script. Other names applied to it are "Pearson Correlation", "Pearson's r", and one I can never remember being "Pearson Product-Moment Correlation Coefficient(PPMCC)". There is two basic ways to utilize this script. One is checking correlation with another asset such as the S&P 500 (provided as a...

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Shows the Pearson correlation between two symbols, including statistical significance test. This is a fork of the original script by Balipour, with the addition of EMA that can be used instead of SMA in the Pearson correlation as an attempt to capture correlation trend changes more quickly, and conversion to pinescript v5. In the end, the EMA does not help much,...

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Display three DACC plots simultaneously, to visualize both directional (up on top, down at bottom) and adirectional DACC (in the middle) simultaneously. Delta Agnostic Correlation calculates a correlation between two symbols based only on the sign of their changes using a Sign Test (en.m.wikipedia.org), regardless of the amplitude of price change. Compared to a...

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The code in contains a simple correlation indicator that can be used as an alternative to Tradingview’s built-in “Correlation Coefficient” indicator. The indicator allows users to correlate up to 3 separate instruments on the same subplot. This allows you, for example, to easily see the correlation of your instrument with stocks, bonds and FX. Alternatively, a...

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This is a simple study designed to visualize price correlations between securities.

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This is a non-parametric correlation statistical test, which is less sensitive to magnitude and more to direction, hence why some people call this a "concordance test". This indicator was originally created by Alex Orekhov (everget), if you like this one, please show the original author some love: This version is extended by tartigradia (2022) to make it more...

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Here I bring you an array of methods to compare the swings and consistency between assets. This indicator is excellent for swing traders and scalpers looking to maximize their profits by examining which of two closely related pairs provides greater price fluctuation during given period. This indicator works against two assets, which are to be configured in...

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