Correlation amongst assets is the degree to which they move in tandem.
Diversification is a technique for reducing risk. Most people tend to think this is achieved simply by investing in a variety of assets instead of just a few. This is wrong.
Proper diversification is achieved when you reduce the correlation between the assets in your portfolio.
0.5 to...
Conceptual indicator based on trying to find an inverse correlation between bitcoin and traditional markets due to bitcoin's usefulness as a hedge against economic downturns.
How to use this script: you look at it and see if there is a correlation or not between bitcoin/Ethereum price and either U.S. stock CVi, buy volume, sell volume, calls, puts, or the call/put ratio.
A multitool to find seasonal effects and components in your time series. Seasonality is one of most frequently used statistical patterns to improve the accuracy of demand forecasts.
To learn more about seasonality see:
en.wikipedia.org
www.investopedia.com
Features
Ability to see up to 16 period lines
33 metric types
Metrics...
Kendall Rank Correlation Coefficient script.
This way to measure the ordinal association between two measured quantities described by Maurice Kendall (1938, Biometrika, 30 (1–2): 81–89, "A New Measure of Rank Correlation").
In this script I compare Kendall Coefficient and Pearson Coefficient (using built-in "correlation" function).
this script by RichardoSantos
description
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Power oscillator to discern what currency's are stronger/weaker.
added option to use a smoothed source(close) for pooling the change, giving longer term directional bias, note that this causes lag in the results as MA's turn slower than price.
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I added currency labels and changed line color only.
A utility tool to find linear relationships between different currency pairs and
specified symbols. This is another private indicator of mine.
Features
37 well known Forex pairs
3 correlation display modes ( Positive and Negative , Positive , Negative )
Ability to specify any symbol to see correlations
Ability to specify a preferred timeframe
...
Correlated Market Matrix - Correlation Computer
Works with up to 7 markets simultaneously to find price divergences.
Study Forex pairs, stocks, crypto alt coins.
Find potential entries quicker.
Short Description:
This indicator analyzes 6 markets and one spread (or 7 and no spread) against the currently loaded instrument,
with support for complex formulas....
Correlation Based Pair Trading Strategy (Trading the spread)
There are three popular styles of Pair trading:
* Distance based pair trading
* Correlation based pair trading
* Cointegration based pair trading
The correlation based strategy is to short the outperforming instrument and go long on the underperforming one
whenever the temporary correlation weakens...
Chande Kroll R-Squared Index script.
This indicator was originally developed by Tushar S. Chande and Stanley Kroll (see their book `The New Technical Trader`, Chapter 2: `Linear Regression Analysis`).
This script provides the opportunity to setup multiple symbols and summerize their correlation values. Each correlation value can be weighted. The result will be a correlation score, which gives you a hint if markets show a divergence.
If you want access send me a PM.
Detects if there is a correlation between two securities. It shows a positive level when they have been moving together and a negative level when they have been moving in opposite directions.
*** Only works for the 28 pairs of the majors & 'major crosses' tickers, this will not provide analysis for anything else!!***
AUD / CAD / CHF / EUR / GBP / JPY / NZD / USD - mix and match.
Makes visual the theory that "a strong dollar is bullish for equities/stocks"
...but oh man, these two are definitely not that strongly correlated.
What's the deal with that? Still learning. Glad for any comments.
This is originally @cryptorae's script with modifications. A great explanation of function can be found on their Twitter.
Original comments:
Follow me @cryptorae on twitter
H/T @AureliusBTC and @cryptom173 for tweaks and assistance
Added three more setups:
Correlation oscillator
Raw volume
Percent change for the two sets of volume ("retail" and...
Hello and welcome to my beta and correlation indicator!
This indicator is meant to be used to assess trading alternatives to BTCUSD on Bitfinex, examining alt-USD pairs that can be traded on margin. This list is as follows:
ETHUSD
LTCUSD
EOSUSD
NEOUSD
OMGUSD
XRPUSD
IOTUSD
BCHUSD
SANUSD
ETPUSD
ETCUSD
XMRUSD
ZECUSD
DSHUSD
Before dwelling further...
Pretty viz of how correlated/uncorrelated price of coins BTC ETH LTC BCH are on GDAX.
From the ref:
"Correlation coefficient. Describes the degree to which two series tend to deviate from their sma values."
![BTCUSD: U.S. Stocks & Options CVI to Bitcoin Correlation [NeoButane]](https://s3.tradingview.com/d/dRbyvCr8_mid.png "U.S. Stocks & Options CVI to Bitcoin Correlation [NeoButane]")
![BTCUSD: Volume Share - Bitcoin Retail % [cryptorae] [NeoButane edit]](https://s3.tradingview.com/m/MSbcOrFz_mid.png "Volume Share - Bitcoin Retail % [cryptorae] [NeoButane edit]")
![BTCUSD: Bitfinex USD Pairs: Betas and Correlations [checkm8]](https://s3.tradingview.com/j/JoBbAWzV_mid.png "Bitfinex USD Pairs: Betas and Correlations [checkm8]")
