Correlation

Multi-Timeframe Correlation Indicator
This Pine Script indicator measures the correlation between the current symbol and a reference symbol (default: GLD) across three different timeframes. It provides traders with valuable insights into how assets move in relation to each other over short, medium, and long-term periods.

Key Features

Multiple Timeframe Analysis: Calculates correlation coefficients over three customizable periods (default: 20, 50, and 200 bars)
Visual Reference Lines: Displays horizontal lines at +1, 0, and -1 to indicate perfect positive correlation, no correlation, and perfect negative correlation
Color-Coded Outputs: Shows short-term correlation in green, medium-term in yellow, and long-term in red for easy visual interpretation

Understanding Correlation
The correlation coefficient measures the statistical relationship between two data series, ranging from -1 to +1:

+1: Perfect positive correlation (both assets move together in the same direction)
0: No correlation (movements are random and independent)
-1: Perfect negative correlation (assets move in opposite directions)

How To Use This Indicator

Market Relationships: Identify how strongly your current asset correlates with the reference symbol
Diversification Analysis: Find assets with negative correlations to build a diversified portfolio
Divergence Opportunities: Watch for changes in correlation patterns that might signal trading opportunities
Trend Confirmation: Use correlation with benchmark assets to confirm broader market trends

Customization Options

Reference Symbol: Change the default GLD to any other symbol you want to compare against
Period Lengths: Adjust the short, medium, and long timeframes to match your trading strategy and timeframe

This indicator helps traders make more informed decisions by understanding the interrelationships between different assets across various timeframes, potentially improving portfolio construction and risk management strategies.

Versionshinweise

11-May-2025:

Changed code to optimize readability

Versionshinweise

Added Tool Tips in settings
Replaced Chart with a Clean Chart

Open-source Skript

Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.

sixfur

Haftungsausschluss

Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.

Open-source Skript

sixfur