Correlation
Correlation measures how closely two variables, such as asset returns, move together. The commonly used Pearson coefficient ranges from minus one to plus one and measures linear relationships; zero correlation does not rule out other relationships, and correlations can change over time.
In a hypothetical study, two currency pairs have a return correlation of +0.8. They tend to move together, but not necessarily by equal amounts or every session.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure