Heatmap — 30 & 90-day correlation
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Colour scale: −1 (opposite) → 0 (unrelated) → +1 (together). Tap or hover a cell for the reading. Derived from ECB reference rates (frankfurter.dev) — daily closes, not tradeable prices. Correlation describes the past window only; it is not a promise about tomorrow.
Why traders watch this
Two positions can look like diversification and behave like one. If EURUSD and GBPUSD run at +0.85, “two trades” is roughly double exposure to the same dollar move — and the second stop does not protect the first. The practical uses are simple: avoid doubling the same bet, spot when a hedge is actually a hedge, and understand why two “different” losses arrived together.
How it works — Live Forex Correlation Matrix
Each pair's daily return is built from currency returns against the dollar (a pair's return is its base currency's return minus its quote currency's), then every pair combination gets a standard Pearson correlation over the chosen window. The math is the textbook formula — mean, standard deviation, covariance — with nothing fitted or hidden.
Questions traders actually ask
- What correlation is “dangerous”? — as a working rule, anything beyond ±0.7 deserves a second look before both positions are held at full size. The number itself is not the danger; ignoring it is.
- Why did the matrix change since last week? — correlations roll with the window. A regime shift (risk-off dollar days) moves them quickly — which is itself useful information.
- Does this include gold and JPY safe-haven behaviour? — JPY pairs are in the matrix. Gold is not (ECB reference rates cover currencies only); treat XAUUSD as its own correlation story.
Education only, never financial advice.