forex course Using the Correlation data

Correlation is expressed as a number between -1 and 1. Values close to zero signify that there is a weak correlation between the two variables. In other words, a movement in one variable has no predictable reaction in the other. Values close to -1 mean that there is a strong inverse correlation. For example, when the variable x (say the EURUSD pair) makes a five point movement to one side, the variable y (USDJPY pair, in example) will make a movement of four-five pips in the opposite direction. Finally, values close to 1 suggest positive correlation. In this case, movements in one variable are matched by movements by the other pair of similar or equal size, and in the same direction.