Correlation Swap - Uneven Lots?

Brainfreeze question:

Am I right that a Correlation swap with two pairs needs to have the same volume in USD exposed per order instead to have the same amount of lots ?

Example:

GBPNZD Short 100 Lots, around 15 million USD

correlated with

NZDJPY Short 187 Lots, also 15 million USD

So the lots are different but the USD volume per order is the same. As such the drawdown should remain stable as long as the correlation holds.

I know the example if not a profit combination, just easy to show the different lots.

Yes, you are correct
Your example means that you will have 10 million GBP exposure with each trade
But you will have net exposure to GBPJPY (short), so if GBPJPY rises you may lose much more than any gain with the swaps

Thx, Gumrai, I did not notice the net exposure part.

Isn't there always a net exposure of some kind ? How do you develop a correlation which is safe ?

Lets take AUDJPY with CADJPY, a nice profit combination and a positive correlation, so one has to be long, the other short.
Basically JPY can do what it wants now with little effect. But I sense there is a connection between AUDCAD which comes into play.
MT4 shows AUDCAD high/low is around 8% within the last 2.5 years. Thats quite a lot ..

Yes you would have net exposure to AUDCAD
The only way that you can reduce your exposure to almost zero would be to trade 3 pairs
ie
Long AUDJPY
Short CADJPY
Short AUDCAD

So you would have to pay 3 lots of spread
Good luck with finding 3 pairs that have a net positive swap though.
If they exist I suspect that any gain would be very tiny and may take a long time before the spread cost is covered. There is also a risk that one of the countries may change its interest rate and the positive swap may disappear.