The following charts give precise details on the correlation between two parities. They show the history and the distribution of the correlation over a given period. The use is relatively simple, you must give the two parities which you want to compare as well as the number of points to calculate the correlation.
The result is given with graphics representation of the hourly and daily correlation. The historical graph is in a traditional representation. The graphics of the distribution of the correlation are given with a polar plot whose reading is rather simple:
- if all the points are grouped that means that the correlation is constant over the period. In this case if the points are on the left the correlation is negative, on the right the correlation is positive.
- if all points are dispersed that means that the correlation is not constant in time, the index of correlation is not usable for trader, it is not significant.
