Correlation

The Correlation indicator measures the correlation between two sets of data during the number of bars specified by the input Length. The correlation between two financial instruments, simply put, is the degree in which they are related. Correlation is based on a scale of 1 to -1. The closer the Correlation coefficient is to 1, the higher their positive correlation. The instruments will move up and down together. The higher the Correlation efficient is to -1, the more they move in opposite directions. A value at 0 indicates that there is no correlation.

Default Inputs

IndepData (Close of Data1) sets the first price series for the indicator.
DepData (Close of Data2) sets the second price series for the indicator.
Length (14) sets the number of previous bars for the Correlation value.
PosCorrAlert (.7) sets the positive correlation value to generate an alert.
NegCorrAlert (-.7) sets the negative correlation value to generate an alert.