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Correlation Matrix

Calculate Pearson correlation between 12 major forex pairs using historical price data.

Tool Status

Live CalculationActive
PrecisionVerified
Risk ModelStandard

Select period & click Calculate

Fetches historical data for 8 pairs and calculates Pearson correlation

Use this result in your trading workflow

Store this calculation, analyze compounding growth, and keep a clean history.

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How to Use This Calculator

1
Select a period — Choose 14, 30, 60, or 90 days of historical data.
2
Click Calculate — Fetches historical data and computes Pearson correlation.
3
Read the matrix — Green = positive correlation, Red = negative correlation.
4
Use for diversification — Avoid opening multiple highly correlated positions.

Pro Tip: Consistent use of this tool is one of the most important aspects of successful trading.

What is Pair Correlation?

Pair Correlation measures how two currency pairs move in relation to each other. A correlation of +1.0 means they move identically; -1.0 means they move in exact opposite directions.

Understanding correlation is essential for risk management. Trading two highly correlated pairs (like EUR/USD and GBP/USD) effectively doubles your risk on the same market direction.

This tool calculates Pearson correlation using daily returns over your selected period, providing an accurate statistical measure of pair relationships.

Key Features

12 major pairs
4 time periods
Pearson correlation
Color-coded matrix
Historical Yahoo data
On-demand calculation

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Frequently Asked Questions

Above +0.7 or below -0.7 is considered strong correlation. Between -0.3 and +0.3 is considered low correlation. Values in between are moderate.

Yes, correlation is not static. It can shift due to economic events, policy changes, and market conditions. That's why we offer different time periods.

Avoid opening multiple positions in highly correlated pairs (e.g., long EUR/USD and long GBP/USD). Use negative correlation for hedging.

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