en Correlation 2.2
Metatrader Indicator (MT4/MT5)
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ℹ Overview
In the world of finance, correlation is a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management. This indicator measures how different securities move in relation to a reference one, thus making portfolio management easier.
- Avoid concurrent trades in highly correlated instruments
- Find trading opportunities among highly correlated instruments
- Correlation is positive when two securities rise in price together
- Correlation is negative when one security increases and the other decreases
The correlation between two securities is measured by a correlation coefficient.
- A coefficient of zero is neutral correlation
- A coefficient of 0.3 is low positive correlation
- A coefficient over 0.8 is high positive correlation
- A coefficient of -0.3 is low negative correlation
- A coefficient over -0.8 is high negative correlation
The correlation is calculated against the native symbol of the chart, and the symbols to evaluate are entered as parameters.
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Input parameters
When loading the expert to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Max History Bars
- Amunt of bars to evaluate to the past upon loading.
- Correlation Period
- Amount of bars to use to calculate the correlation.
- 1st Symbol to 8th Symbol
- Enter the symbols to calculate the correlation.
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FAQ
- Does the indicator repaint?
- No, the indicator does not repaint.
- Can I choose period and timeframe to apply?
- Yes, you can!
Screenshots
