Correlation

Description

The Correlation study calculates the correlation coefficient between a security under consideration and another security or index.

Correlation is plotted on the -1 to +1 scale: correlation coefficient equal to +1 suggests perfect direct correlation while the perfect inverse correlation is represented by the coefficient equal to -1. When prices move independently, the correlation coefficient is 0.

Input Parameters

Parameter Description
length The number of bars used to calculate the correlation coefficient.
correlation with security Security to calculate the correlation with.

Plots

Plot Description
Correlation The Correlation study.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.