Role Of, Some Facts - Correlation
A worth nearer to - 1 means that the negative relation is strong, and most of the time, the direction of movement is opposite. This makes these two pairs badly related foreign exchange pairs. Currency pairs that have a strong positive relation will tend to move in the identical direction most of the time. The pairs that have a strong negative relationship will move in the opposite direction most of the time. Please note that volatility may be very distinctive even if the pairs are strongly relevant. This is cause even though the world economies may be interdependent, the direction of two economies as well as market sentiments cannot have overall correlation. There will be times that correlations may allayed even amid strongly associated pairs and contrarily.