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Showing posts from February, 2017

Least Correlated Forex Currency Pairs

Minimizing risk trough Un-correlationThe number of possible major/minor currency is large and trading currencies that are correlated logically increases risk. My Google search for least correlated Forex pairs came up empty so I decided to run the analysis myself. Using information from this list on Oanda I created a JS script that would loop through the table entires and return the least correlated pairs based on the 1 year value. To my surprise I had to permit high correlations of >0.80 for the major currencies, and >0.95 for the major and minor currencies together to get values returned.Major Currencies ["AUD/USD", "EUR/AUD", "EUR/CHF", "EUR/GBP", "EUR/USD", "NZD/USD"] Major + Minor Currencies ["AUD/CAD", "AUD/CHF", "AUD/HKD", "AUD/JPY", "AUD/NZD", "AUD/SGD", "CAD/CHF", "CAD/HKD", "CAD/JPY", "CAD/SGD", "CHF/HKD&quo…