CURRENCY CORRELATION COEFFICIENT
You should always include an evaluation of currency correlation for the majors in every trade plan that you create. The correlation between currency pairs can change at any time, even for pairs, which are normally 95 percent-plus correlated.
Correlation is determined by what is known as the correlation coefficient, which ranges between -1 and +1. Table 7.3 explains the meaning behind that number.
TABLE 7.3 Correlation Coefficient
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