Market correlation matrix
See which pairs move together and which move opposite — essential for managing risk and avoiding accidental over-exposure.
Correlation measures how two markets move in relation to each other, from +100 (they move in lockstep) through 0 (no relationship) to −100 (they move in perfect opposition). For anyone holding more than one position, it is one of the most underrated risk tools there is.
Why it matters: buying two strongly positive-correlated pairs is effectively the same bet twice — double the risk, not diversification. Two negatively correlated positions can quietly cancel each other out. Knowing the correlations keeps your real exposure honest.
How to read it
- Values near +100 (often shown in strong green) mean the pairs move together; near −100 (red) means they move opposite.
- Values near 0 mean little relationship — those positions are genuinely independent bets.
- Correlations change over time and by timeframe, so check the matrix again before sizing up a multi-position book.
How to use it with ForecastingStocks
- Before adding a second position, check its correlation to what you already hold — avoid doubling the same risk by accident.
- Build genuine diversification by combining low- or negatively-correlated ideas the AI has flagged.
- Use negative correlations deliberately for hedging when you want to reduce, not add, exposure.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.
Market data and the live widgets on this page are provided by third parties (Myfxbook and TradingView) for informational purposes only. ForecastingStocks is not affiliated with these providers and does not control or guarantee their data.