Thursday, July 22, 2010

Forex Education : What is Forex Correlation ?

Correlation is the tendency of certain currency pairs to move in tandem with each other. Positive Correlation means that the pairs move in the same direction, Negative Correlation means that they move in opposite directions.

A correlation coefficient of 1.0 means the pairs move exactly in tandem with each other; a correlation of -1.0 means the pairs move in exactly the opposite direction.

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