Assalam u Alaikum! Dear member Productive ya successful trader banny kay liey yeh bahut important hai kay aap poory portfolio ko samjhin jo market ke volatility ko affect karta hai. Aur ye cheez jab forex trading kar rahy hon to zaida important hoti hai. Kun kay currencies ke price pairs main hoti hai to koi bhe pair kise dosry pairs say completely independent nahi hai. Jab aap ess correlation say wakif ho jaaty hain tab aap apni overall trading ko control kar sakte hain.
What is correlation:
Financial world main correlation 2 currencies kay darmiyaan statistical measure ko kehty hain. Sada alfaaz main es ka maylab ye hai kay jab aik currency pair move karta hai to uska kitna affect kise dosry pair pe parta hai jo uss currency pair sy related hai. Ab jab aapko correlation ke samjh aa jaati hai aur pairs ka apas main correlation ka andaza ho jaata hai to uss correlation ke miqdaar ya kitna zaida apas main taluq hai es baat ka pata hona chahey. Yani kay agar GBPUSD aur EURUSD ka apas main correlation hai to ye cheez dekhine hai kay jab GBPUSD up move karta hai to EURUSD kis direction main move karta hai aur agar GBPUSD 10 percent up move karta hai to EURUSD same direction ya opposite direction main kitne percent move karta hai. Ye cheez ko dekhny kay liey correlation coefficient ko use kiya jaata hai.
Correlation Coefficient:
Correlation ko compute karny k liey correlation coefficient ka istemaal kiya jaata hai. Correlation ke range -1 sy +1 kay darmiyaan hoti hai. Aik perfect positive correlation ka matlab hai kay currencies kay 2 pairs 100% aik direction main move karte hain. Aik perfect negative correlation ka matlab hai kay 2 currency pairs 100% mukhalif simt main move karin gy. Agar 2 currency pairs ka correlation zero hai to to eska matlab hai wo apas main independent hain aur aik pair ke movement sy dosry pair ke movement par asar nahi parta aur dono ke harkat random hoti hai.
Correlation Table:
Different periods of time main neechy diey gay tables main aap currencies ka correlation coefficient dekh sakty hain.
GBP/USD Correlations
What is correlation:
Financial world main correlation 2 currencies kay darmiyaan statistical measure ko kehty hain. Sada alfaaz main es ka maylab ye hai kay jab aik currency pair move karta hai to uska kitna affect kise dosry pair pe parta hai jo uss currency pair sy related hai. Ab jab aapko correlation ke samjh aa jaati hai aur pairs ka apas main correlation ka andaza ho jaata hai to uss correlation ke miqdaar ya kitna zaida apas main taluq hai es baat ka pata hona chahey. Yani kay agar GBPUSD aur EURUSD ka apas main correlation hai to ye cheez dekhine hai kay jab GBPUSD up move karta hai to EURUSD kis direction main move karta hai aur agar GBPUSD 10 percent up move karta hai to EURUSD same direction ya opposite direction main kitne percent move karta hai. Ye cheez ko dekhny kay liey correlation coefficient ko use kiya jaata hai.
Correlation Coefficient:
Correlation ko compute karny k liey correlation coefficient ka istemaal kiya jaata hai. Correlation ke range -1 sy +1 kay darmiyaan hoti hai. Aik perfect positive correlation ka matlab hai kay currencies kay 2 pairs 100% aik direction main move karte hain. Aik perfect negative correlation ka matlab hai kay 2 currency pairs 100% mukhalif simt main move karin gy. Agar 2 currency pairs ka correlation zero hai to to eska matlab hai wo apas main independent hain aur aik pair ke movement sy dosry pair ke movement par asar nahi parta aur dono ke harkat random hoti hai.
Correlation Table:
Different periods of time main neechy diey gay tables main aap currencies ka correlation coefficient dekh sakty hain.
GBP/USD Correlations