Correlation checklist

Hi

Anybody got a checklist on what currency pairs to avoid if you have a running trade. For example
if a trade long is opened on GU avoid certain pairs to combat correlation and doubling exposure.

Thanks

Try mataf

excellent thanks

I dont' think FX correlations are stable (otherwise you could run start arb strategy) and depend on the period of observations and length of the sample. So it is basically gives only rough notion how currency pairs depend on each other.

That's a good one. Thanks

The problem with correlations of time series that they have dynamic nature, measurements in different times and using different periods can easily provide conflicting values.

Trading decisions should be based on thorough research, an understanding of market dynamics, and your individual risk tolerance. While a checklist is useful, the intricacies of the forex market can be complex