Forex Currency Correlation Calculation
Here is the correlation calculation process reviewed step-by step:
1. Get the pricing data of two currency pairs.For example the EUR / USD and USD / CHF.
2. Make two columns, each labeled with one of these pairs. Then, fill the columns with the latest prices that occurred a day for each pair during the period under forex review.
3. At the bottom of a column in an empty space, type = Correl (
4. Highlight all the data in a column of prices, you must obtain a range of cells in the formula box.
5. Add a comma.
6. Repeat steps 3-5 for the other currency
7. Close the formula so that it looks a = Correl (A1: A40, B1: B40)
8. The number represents the correlation occurs between the two currency pairs.
Although the correlations change, no need to update your numbers every day, updating once every week or at least once a month is usually a good idea.
See part 1: Forex Currency Pair Correlations
