Correlation Analysis
Correlation is a statistical measure that quantifies the relationship between the movements of two assets. It ranges from -1 to 1. A correlation of 1 indicates that the two assets move in perfect synchronization, meaning their prices rise and fall together. A correlation of -1 suggests they move in opposite directions: when one asset’s price drops, the other’s increases. A correlation of 0 indicates no relationship between the assets or at least a relationship that cannot be quantified.
Market Data: The name of the market data analyzed.
Pair(s): The trading pair(s) included in the analysis.
Timeframe: The timeframe used for the analysis.
Time Range: The period covered in the analysis.
Correlation Matrix
The Matrix displays correlations between various pairs, with each value representing the correlation between its corresponding column and row. Notably, the correlation of each asset with itself is always 1, and the matrix remains symmetrical across its main diagonal.
Correlation Table
The table presents correlations between different pairs. You can use the search option or sort the pairs based on correlation values to gain a clearer understanding of their relationships.