OPEN-SOURCE SCRIPT
Multi-Period Correlation
Description:
The “Correlation Coefficient - Multi Periods” indicator allows you to analyze the correlation between the price of the chart’s asset and another specified asset across multiple time periods simultaneously. It provides a visual representation of how closely the two assets move in relation to each other over user-defined lengths, helping traders and analysts identify relationships, diversification opportunities, and potential hedging strategies.
Features:
• Multi-Period Correlation: Input multiple periods (e.g., 20, 50, 100) to see correlations across different timeframes on the same chart.
• Customizable Asset: Choose any symbol to compare against the current asset.
• Dynamic Visualization: Each correlation is plotted with a unique color for easy distinction.
• Validation: Warns the user if invalid inputs are provided for the lengths, ensuring accuracy.
• Reference Lines: Horizontal lines at 1, 0, and -1 for quick interpretation:
• 1: Perfect positive correlation.
• 0: No correlation.
• -1: Perfect negative correlation.
Use Cases:
• Portfolio Analysis: Evaluate how an asset correlates with another to assess diversification.
• Market Analysis: Identify trends and relationships between stocks, indices, or other financial instruments.
• Risk Management: Understand correlation to optimize hedging strategies and reduce portfolio risk.
This indicator is ideal for traders and investors seeking to make informed decisions by understanding inter-market relationships and their dynamics over time.
The “Correlation Coefficient - Multi Periods” indicator allows you to analyze the correlation between the price of the chart’s asset and another specified asset across multiple time periods simultaneously. It provides a visual representation of how closely the two assets move in relation to each other over user-defined lengths, helping traders and analysts identify relationships, diversification opportunities, and potential hedging strategies.
Features:
• Multi-Period Correlation: Input multiple periods (e.g., 20, 50, 100) to see correlations across different timeframes on the same chart.
• Customizable Asset: Choose any symbol to compare against the current asset.
• Dynamic Visualization: Each correlation is plotted with a unique color for easy distinction.
• Validation: Warns the user if invalid inputs are provided for the lengths, ensuring accuracy.
• Reference Lines: Horizontal lines at 1, 0, and -1 for quick interpretation:
• 1: Perfect positive correlation.
• 0: No correlation.
• -1: Perfect negative correlation.
Use Cases:
• Portfolio Analysis: Evaluate how an asset correlates with another to assess diversification.
• Market Analysis: Identify trends and relationships between stocks, indices, or other financial instruments.
• Risk Management: Understand correlation to optimize hedging strategies and reduce portfolio risk.
This indicator is ideal for traders and investors seeking to make informed decisions by understanding inter-market relationships and their dynamics over time.
Script open-source
Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
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