Hello,
I have a doubt about how normalize the prices of a FX cross. I mean, If i have to compare a cross with a stock, like: Google vs EUR/USD How can I calculate the variation in percentage of the EUR/USD ?
I have this kind of problem because if I calculate the difference in % I could get:
from: 1.3000 to: 1.3050 variation: 0.38%
from: 1.6000 to: 1.6050 variation: 0.31%
So a different percentage could be interpreted as different movement, but it is not true, we are always talking about 50 pips.
So, with stock I have not problem, the variation(%) it is the "real" value that I need, but with FX I think I must normalize the data before comparing them (example: doing a linear regression).
Could someone give me an advice?
Thank you!
I have a doubt about how normalize the prices of a FX cross. I mean, If i have to compare a cross with a stock, like: Google vs EUR/USD How can I calculate the variation in percentage of the EUR/USD ?
I have this kind of problem because if I calculate the difference in % I could get:
from: 1.3000 to: 1.3050 variation: 0.38%
from: 1.6000 to: 1.6050 variation: 0.31%
So a different percentage could be interpreted as different movement, but it is not true, we are always talking about 50 pips.
So, with stock I have not problem, the variation(%) it is the "real" value that I need, but with FX I think I must normalize the data before comparing them (example: doing a linear regression).
Could someone give me an advice?
Thank you!