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Currency Correlation Matrix

See how currency pairs move in relation to each other. Use correlations to diversify risk and find hedging opportunities.

correlation.timeframe:
EUR
GBP
USD
USD
AUD
NZD
USD
EUR
EUR
GBP
EUR
1.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
GBP
0.00
1.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
USD
0.00
0.00
1.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
USD
0.00
0.00
0.00
1.00
0.00
0.00
0.00
0.00
0.00
0.00
AUD
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
0.00
0.00
NZD
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
0.00
USD
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
EUR
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
EUR
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
GBP
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
correlation.legend
-1.0 (correlation.negativeCorrelation)0.0 (correlation.noCorrelation)+1.0 (correlation.positiveCorrelation)

correlation.howToRead

  • • +0.7 to +1.0 - correlation.strongPositive
  • • -0.3 to +0.3 - correlation.weak
  • • -0.7 to -1.0 - correlation.strongNegative

correlation.tradingTip

The FxFriend Currency Correlation Matrix is an essential risk management tool for forex traders who want to understand how different currency pairs move in relation to each other. Correlation values range from +1 (perfect positive correlation - pairs move in the same direction) to -1 (perfect negative correlation - pairs move in opposite directions). Understanding these relationships is crucial for portfolio diversification and risk management. For example, EUR/USD and GBP/USD typically have a strong positive correlation around +0.85, meaning if you're long on both pairs, you're essentially doubling your exposure to similar market movements. Conversely, EUR/USD and USD/CHF often show strong negative correlation around -0.90, making them suitable for hedging strategies. Our correlation matrix displays data across three timeframes (daily, weekly, and monthly) because correlations can change over time based on market conditions, central bank policies, and economic events. Professional traders use this tool to avoid unintentional overexposure by checking correlations before opening new positions. The color-coded display makes it easy to spot strong positive correlations (green), strong negative correlations (red), and neutral relationships (gray). Whether you're building a diversified forex portfolio or looking for natural hedges, the FxFriend Correlation Matrix provides the data-driven insights you need.