Understanding Currency Correlations

Currency pairs can move together (positive correlation) or in opposite directions (negative correlation) based on economic relationships.

Major Currency Correlations

Learn about strong correlations like EUR/USD and GBP/USD, and negative correlations like USD/JPY and gold.

Diversification Strategies

Diversifying across different currency pairs and trading styles reduces overall portfolio risk and improves consistency.

Correlation Tables

Using correlation tables helps identify which currency pairs move similarly and avoid over-concentration of risk.

Portfolio Risk Assessment

Regular assessment of portfolio correlation helps maintain balanced exposure and optimize risk-adjusted returns.