Negative correlation between EUR/USD and USD/CHF

I may be missing something but here is my question. If I am long the EUR/USD and long the USD/CHF and they are negatively correlated, so that as one currency goes up, the other goes down (more or less). Is the same negative correlation in place if I am short the EUR/USD and short the USD/CHF? in other words if I am short both both pairs do they "off-set" each other in the same way as I was long in both positions. Does the "hedge" work the same way ?

Correct

You missed nothing - you have it exactly right.

EUR and CHF are normally very closely correlated currencies, so the two instruments you mention are about as strongly inversely correlated as you can get.

AUD and NZD are generally quite closely correlated, too, so AUD/USD and NZD/USD are generally positively correlated just like EUR/USD and USD/CHF are negatively correlated.

Be aware, though, that sudden news affecting one currency can sometimes (temporarily) change that correlation a lot - in both the cases mentioned above, and in similar ones.

Yes, if you are short the EUR/USD and short the USD/CHF, the same negative correlation would be in place as when you were long in both positions. When you are short both pairs, they would still "offset" each other in a similar way as being long in both positions. The hedge would work in a similar manner to help mitigate risk and potential losses.

You've got it right! If you're short on both EUR/USD and USD/CHF, the negative correlation still applies. Just like when you were long on both pairs, being short on both will also lead to an offsetting effect due to their negative correlation