Currency Correlation in Forex

Currencies Correlation

Dear friends, currencies correlation basically asy pairs hotay hain jin ki moment same ho aur wo aik sath hi up ya down moment kar rahay hon, jesa kay Canadian Dollar, oil prices k corelated ha q k canada aik oil exporter country ha, isi tarah inka effect japan par b parta ha q k wo aik oil importer country ha, Newzeland gold k sath correlated ha, correlation 2 tarah ki hoti ha.



Positive correlation:

jab forex market ma 2 currency pairs same direction ma move kar rahay hotay hain, unhain positive correlation kaha jata ha, jaisay EUR/CAD aur EUR/USD same direction ma move kartay hain,



Negative correlation:

forex market ma jab 2 currency pairs opposite moment kar rahay hon usay hm negative correlation kehtay hain, iski misal ma hm USD/CHF aur EUR/USD ko la saktay hain, in ma sa jb aik pair up kata ha to dusra down moment karta ha aur isi tarah jb aik down jata ha to dusra upward moment karta ha.

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Importantance of Correlations

Agar dakha jay to eham commodity correlation ma AUD/USD aur gold, USD/CAD aur west texas intermediate(US Oil) aur USD/CLP aur Copper shamil hain, lihaza in par trading k liay traders ko commision, spreads, liquidith aur aditional fees wagera ko b mind ma rakhna chaiay, in k sath sath currencies aur commodities ki latest updates hona b zaruri hain, q k baaz aukat in pairs ka relationship breakdown b ho jata ha jis sa nuksan ho sakta ha, lihaza aisi sitiation sa bachnay k liay intermarket anaylisis bht ahmiat rakhtay hain, jin ki base par hm safe trading kar saktay hain aur mistakes sa bach saktay hain

Re: Currency Correlation in Forex

Currency Correlation

Mukhtalif currency joro ka apas me taluq (correlation) hota hai. Currency jore ki aik taraf k qeemat currency jore k dosre taraf ki qeemat par asar-andaz hoti hai. Correlation se murad hai, k do (two) mukhtalif jore waqat k sath sath kis tarah aik jaise (similar) ya mukhtalif (des-similar) chalte hen.
Correlation ko aam tawar par 1.00 aur 0.00 k darmeyan napa (measure kia) jata hai. 1.00 hone ka matlab hai k dono (two) currency jore apas me correlated hen. Jis ka matlab hai k jab aik currency jora uper jayega to dosra bhi uper jayega. Is k bar-aks 0.00 par dono currency joron ki movement aik dosre se mukhtalif hoti hai, jis ko non-correlation bhi kaha jata hai. Non-correlation me agar aik currency jora uper jata hai to dosra nechay ki taraf movement karta hai.
Kuch currency jore qudrati (naturally) correlated hote hen, aur isbki pehchan bohut asani se ho jati hen, jaisa k; EUR/CHF aur GBP/CHF etc. Correlation joro ki movement bohut smoth tareeqay se hoti hai,lekin waqat k sath sath us me dramaye tabdeeli ronuma hoti rehti hai.
Correlation ki madad se market ki analysis karna aur trading decision leya ja sakta hai. Q k agar aik currency jore ki analysis dosre currency jore k analysis se mutabiqat (similarity) rakhti hai. Misal k tawar par agar hum EUR/CHF ki analysis ko GBP/CHF pe aplly karen to is se hamara bohut sara waqat bach jata hai.

Correlation coefficient formula

Positive Currency Correlation

Jab do (two) currency joron (pairs) k darmeyan correlation 1.00 ho, to is ka matlab hai k ye positive Correlation hai. Positive correlation me dono currency jore bayak waqat (same time) me uper (up) ya nechay (down) jayengay, jesay; EUR/USD aur GBP/USD.

Negative Currency Correlation

Agar do mukhtalif currency joron ka apas me value 0.00 ya us k qareeb ho, to is ka matlab hen k currency jore non-correlated hen, jab bhi aik currency pair agar upward move karega to dosra downward jayega. Non-correlated currency pairs me EUR/USD aur USD/JPY shamil hai.

Commodity-Currency aur Commodity-Commodity Correlation

Forex trading market me na sirf currency jore apas me correlated ya non-correlated nahi hote, bulke cuch commodities bhi currency pair k sath correlation ya non-correlation ka taluq rakhte hen. Misal k tawar par jab gold upward jata hai to USD donward move karta hai, isi tarah jab Gold upward jata hai to AUD bhi upward jata hai. Crude oil ka direct inhisar CAD pe hota hai, crude oil k upward ya downward movement se CAD ki movement bhi upward ya downward hoti hai.
Commodities ka bhi apas me correlation hota hai, jis tarah se currencies ka correlation hota hai. Misal k tawar par agar gold ki qeematen upward jati hai, to us k sath sath Copper, Silver aur dosre metals ki bhi price bullish move kar jati hai. Is k elawa Oil ki price bullish ya bearish jane se gas aur dosre energy products k bhi prices up ya down jate hen.
Cryptocurrency ki bhi correlation hoti hai, jab bhi Bitcoin upward jata hai, to us k sath sath dosre Crypto currencies bhi bullish jati hen.