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.
Past performance is no guarantee of future performance.