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What is Correlation? - Definition & Explanation

Definition

The statistical relationship between the price movements of two currency pairs.

Correlation Explained

Correlation in forex measures how two currency pairs move in relation to each other. A positive correlation means they move in the same direction, negative correlation means opposite directions. Measured from -1 to +1.

Correlation - Frequently Asked Questions

EUR/USD and GBP/USD show strong positive correlation. EUR/USD and USD/CHF show strong negative correlation.