See how trading instruments move in relation to each other. Identify correlated and inversely correlated pairs to manage risk and diversify your portfolio.
| EUR/USD | GBP/USD | USD/JPY | AUD/USD | USD/CAD | NZD/USD | USD/CHF | EUR/GBP | EUR/JPY | GBP/JPY | |
|---|---|---|---|---|---|---|---|---|---|---|
| EUR/USD | 1.00 | +0.85 | -0.30 | +0.70 | -0.72 | +0.65 | -0.92 | +0.35 | +0.62 | +0.55 |
| GBP/USD | +0.85 | 1.00 | -0.25 | +0.72 | -0.68 | +0.62 | -0.88 | -0.50 | +0.52 | +0.72 |
| USD/JPY | -0.30 | -0.25 | 1.00 | +0.15 | +0.38 | +0.10 | +0.40 | -0.08 | +0.55 | +0.68 |
| AUD/USD | +0.70 | +0.72 | +0.15 | 1.00 | -0.65 | +0.92 | -0.60 | +0.12 | +0.55 | +0.50 |
| USD/CAD | -0.72 | -0.68 | +0.38 | -0.65 | 1.00 | -0.58 | +0.60 | -0.15 | -0.40 | -0.35 |
| NZD/USD | +0.65 | +0.62 | +0.10 | +0.92 | -0.58 | 1.00 | -0.55 | +0.10 | +0.48 | +0.42 |
| USD/CHF | -0.92 | -0.88 | +0.40 | -0.60 | +0.60 | -0.55 | 1.00 | -0.22 | -0.45 | -0.48 |
| EUR/GBP | +0.35 | -0.50 | -0.08 | +0.12 | -0.15 | +0.10 | -0.22 | 1.00 | +0.18 | -0.28 |
| EUR/JPY | +0.62 | +0.52 | +0.55 | +0.55 | -0.40 | +0.48 | -0.45 | +0.18 | 1.00 | +0.90 |
| GBP/JPY | +0.55 | +0.72 | +0.68 | +0.50 | -0.35 | +0.42 | -0.48 | -0.28 | +0.90 | 1.00 |
Correlation measures how two instruments move relative to each other, expressed as a value from -1.00 to +1.00. A value of +1.00 means they move perfectly in sync. A value of -1.00 means they move in exact opposite directions. A value near 0 means their movements are largely independent.
Correlations help you understand your true portfolio exposure. If you take the same directional trade on two highly correlated instruments, you are effectively doubling your position size. Conversely, trading uncorrelated or negatively correlated instruments provides genuine diversification, reducing the impact of any single trade going wrong.
Going long on both EUR/USD and GBP/USD at the same time is almost like taking a double-sized EUR/USD position, since these pairs have a correlation of roughly +0.85. Similarly, going long EUR/USD and short USD/CHF is nearly the same trade twice, because their correlation is about -0.92 (long EUR/USD = short USD/CHF). Always check correlations before entering multiple positions to avoid unintended risk concentration.
Negatively correlated instruments can serve as natural hedges. For example, if you hold a long equity index position (ES), a small allocation to bonds (ZB) or gold (GC) can offset losses during risk-off events. This does not eliminate risk but can smooth out your equity curve and reduce maximum drawdown.
The values shown here are approximate 1-year historical correlations and represent general long-term relationships. In practice, correlations shift depending on market regimes, economic events, and central bank policy. During crises, correlations often spike toward +1.00 as everything sells off together. Always treat these values as guidelines rather than fixed rules, and review correlations periodically.
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