Correlation

Type

Comparison indicator

Description

The "Correlation" indicator calculates the correlation between two securities. This means that at least two securities (or at least two time series) must be displayed in the "Chart analysis" widget. In the indicator settings, select the corresponding time series or securities.

Correlation is a statistic that shows how two values move in relation to each other.

Formula/calculation

r = Cov (security 1 , security 2) / (standard deviation security 1 * standard deviation security 2)

Parameter

• Time series 1
• Time series 2
• Period: The default setting is 30 periods

Example: Correlation