Currency Correlation in Forex is not a fixed affair! Beware!
The reason behind currency correlation in Forex
#One – Clubbing
#Two – Interdependency
#Three – Risk
How to measure the currency correlation of forex pairs?
Perplexed? No worries. there's a simple answer .
The spreadsheet has an inbuilt function (=CORREL). you'll use it to seek out the correlation of any asset class.
We have put down the correlation of all the main forex pairs for the year 2018. If the worth is on the brink of 1, then it's a direct correlation . On the contrary, the worth of -1 may be a indirect correlation .
Well, traders believed this correlation as a hard and fast affair within the forex market, until that point . And it had been a simple deal, back then. But, here is that the twist within the tale.
The Currency Correlations aren't fence carvings
The year 2019 had a big change within the store for us, traders. Some divorces and marriages happened , which could are shocking even to the fans of Game of thrones.