Efficient correlation
From time to time, it is interesting to look at correlation matrices. It helps to make the shifting relationship between currencies and other markets clearer. However, correlations should not be confused with causation.
When cited in market commentary, correlations are often treated as constants, but they are really better conceived of as still frames in streaming video. Correlations between financial variables move around considerably, and even the signs (positive or negative) change.
We looked
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