업데이트됨
Correlation Meter
This script calculates the covariance and correlation coefficient between two markets using arrays.
Lookback: How many bars to perform the calculation on.
Source: Price source to calculate the correlation on.
Reference Market: The reference market to compare to the current market.
It's a simple indicator, but very useful for determining how correlated your preferred markets to trade are.
A correlation reading of +1.0 means the markets are perfectly positively correlated, a reading of -1.0 means they are perfectly negatively correlated.
If you're not sure what correlation & covariance are then Google the terms with "Investopedia" added to the end - they have some great definitions and examples.
For traders this can be useful for deciding how much risk to spread across two markets that have a high correlation, or how to hedge existing positions by trading a negatively correlated market.
For investors this can be useful for building a truly diversified portfolio.
If a market has a high positive correlation, the black line will stay above zero most of the time. If a market has a high negative correlation, the black line will stay below zero most of the time.
A market with no or little correlation will bounce between the two or hover around zero most of the time.
The example market above is comparing Apple's weekly price action to the S&P500's over the past 20 weeks. It has a high positive correlation as the black line is above zero most of the time.
Good luck with your trading!
Lookback: How many bars to perform the calculation on.
Source: Price source to calculate the correlation on.
Reference Market: The reference market to compare to the current market.
It's a simple indicator, but very useful for determining how correlated your preferred markets to trade are.
A correlation reading of +1.0 means the markets are perfectly positively correlated, a reading of -1.0 means they are perfectly negatively correlated.
If you're not sure what correlation & covariance are then Google the terms with "Investopedia" added to the end - they have some great definitions and examples.
For traders this can be useful for deciding how much risk to spread across two markets that have a high correlation, or how to hedge existing positions by trading a negatively correlated market.
For investors this can be useful for building a truly diversified portfolio.
If a market has a high positive correlation, the black line will stay above zero most of the time. If a market has a high negative correlation, the black line will stay below zero most of the time.
A market with no or little correlation will bounce between the two or hover around zero most of the time.
The example market above is comparing Apple's weekly price action to the S&P500's over the past 20 weeks. It has a high positive correlation as the black line is above zero most of the time.
Good luck with your trading!
릴리즈 노트
Updated to Pine Script v5릴리즈 노트
Updated to v6 pine script
YouTube Lessons: rebrand.ly/zyt
My Indicators & Strategies Code: rebrand.ly/zmisc
Backtesting Course: rebrand.ly/ztst
FREE Pine Script Basics Course: rebrand.ly/zpsbc
Pine Script MASTERY Course: rebrand.ly/zpsmc
My Indicators & Strategies Code: rebrand.ly/zmisc
Backtesting Course: rebrand.ly/ztst
FREE Pine Script Basics Course: rebrand.ly/zpsbc
Pine Script MASTERY Course: rebrand.ly/zpsmc
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
YouTube Lessons: rebrand.ly/zyt
My Indicators & Strategies Code: rebrand.ly/zmisc
Backtesting Course: rebrand.ly/ztst
FREE Pine Script Basics Course: rebrand.ly/zpsbc
Pine Script MASTERY Course: rebrand.ly/zpsmc
My Indicators & Strategies Code: rebrand.ly/zmisc
Backtesting Course: rebrand.ly/ztst
FREE Pine Script Basics Course: rebrand.ly/zpsbc
Pine Script MASTERY Course: rebrand.ly/zpsmc
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.