NexusFi: Find Your Edge


Home Menu

 





Evaluating correlations


Discussion in Brokers

Updated
    1. trending_up 1,928 views
    2. thumb_up 2 thanks given
    3. group 1 followers
    1. forum 1 posts
    2. attach_file 0 attachments




 
Search this Thread
  #1 (permalink)
 
keymoo's Avatar
 keymoo 
Bedford, UK
 
Experience: Beginner
Platform: SierraChart/TT Feed
Trading: NQ
Posts: 129 since Mar 2012
Thanks Given: 212
Thanks Received: 215

I am using Sierra Chart and attempting to evaluate an unbiased correlation between two markets. By "correlation" I am also including inversely correlated (for example EURUSD, USDCHF are pretty nicely inversely correlated most of the time).

The idea is I trade a basket of instruments on the higher TFs (60min+) that are reasonably uncorrelated. Trouble is correlations change over time as market dynamics change and underlying fundamentals drive correlations towards or away from each other.

In Sierra Chart I am using the Correlation Coefficient study to evaluate on a daily chart to get a rough idea how correlated two markets are. The question is, am I using the right study? I believe I am. What settings should I use? I am currently using a 21-day period which will show a moving correlation coefficient over the past 21 trading days on my chart. If you are interested in trying this on Sierra Chart I did a video on how to set it up:





Here's a chart of how correlated the NQ is to the DAX:


Thanks for any comments, suggestions or ideas.


Follow me on X Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Ceasefire in Name Only: Three Numbers That Define the Ir …
Prediction Markets & Event Contracts
Penalties in Budapest, Peace Deadline in Tehran: Arsenal …
Prediction Markets & Event Contracts
Prop Firms Are Banning Gold Trading as Record Prices Mak …
Funded Trading Evaluation Firms
May 26 Deadline Dies at 7.5% as US Strikes Iran During C …
Prediction Markets & Event Contracts
Trump Truth Social Fires Hormuz From 10% to 59% -- Arsen …
Prediction Markets & Event Contracts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Sober Journey With S&P
24 thanks
2026 Jlab journal
10 thanks
Lady Vols Primer: Trading Volatility Journal
7 thanks
Algo automated / semi-automated trading anyone?
6 thanks
Trying to learn Volume and price action correlation
5 thanks




Last Updated on July 6, 2013


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts