The ratio of 1.5 lot usd/chf to 1 lot eur/usd doesn't precisely make you market neutral right? It got to be 1.5xxx to 1 I guess.
So even the pair correlation stays the same, the price movement in them can give you some money loss as they cannot balance each other well enough.
So is this kind of loss negligible?
I said that you had to ajust from time to time 1 to 1,5 is acceptable
if you trade with oanda for exemple you can do 1 and 1,57 today
To find 1,5 or1,57 you just have to find the ratio making usd market neutral very easy
Also, when I look at the eur/chf, I can see it doesn't really always have a sideway movement (i.e. they seem to have a trend in the long run, eur is worthing more and more compared to chf in the first half of this year). So their correlation seems to be unstable, making usd/chf and eur/usd cannot be hedged sometimes?
I said in my first post not to check on a long term basis as you need to adjust sometimes. You dont have to say for exemple 1 year ago euro/usd was xxx and usd/chf YYY and eur/chf zzzz so things should be the same now.
That means that you cannot take a position and keep it 1 month or 1 year.
Every day is an other day and forget about the 2 days ago correlation
I was sleeping lol i missed the short we went to +0,25% divergence and are back to 0,16 now
So even the pair correlation stays the same, the price movement in them can give you some money loss as they cannot balance each other well enough.
So is this kind of loss negligible?
I said that you had to ajust from time to time 1 to 1,5 is acceptable
if you trade with oanda for exemple you can do 1 and 1,57 today
To find 1,5 or1,57 you just have to find the ratio making usd market neutral very easy
Also, when I look at the eur/chf, I can see it doesn't really always have a sideway movement (i.e. they seem to have a trend in the long run, eur is worthing more and more compared to chf in the first half of this year). So their correlation seems to be unstable, making usd/chf and eur/usd cannot be hedged sometimes?
I said in my first post not to check on a long term basis as you need to adjust sometimes. You dont have to say for exemple 1 year ago euro/usd was xxx and usd/chf YYY and eur/chf zzzz so things should be the same now.
That means that you cannot take a position and keep it 1 month or 1 year.
Every day is an other day and forget about the 2 days ago correlation
I was sleeping lol i missed the short we went to +0,25% divergence and are back to 0,16 now