Correlation Matrix by Daveatt

Hi everyone

A co-pinescripter friend told me this was impossible to do and we bet a free dinner tomorrow. Guess who's going to be invited to a very fancy restaurant tomorrow :) :) :) (hint: not him)

What's the today script is about?

This script is based on this MT4 correlation matrix
Asset correlation is a measure of how investments move in relation to one another and when. ... Under what is known as modern portfolio theory, you can reduce the overall risk in an investment portfolio and even boost your overall returns by investing in asset combinations that are not correlated.

I did it because it wasn't existing before with this format. What I discovered was only correlations shown as plot lines... #this #is #not #pretty

How does it work?

The correlation matrix will not be based on the current asset of the chart BUT will be based on the current timeframe (confusing? if yes, read it again until you'll get it)

- Numbers of bars back: numbers of bars used for the correlation calculation
- High correlation level: Correlation upper threshold. If above, then the correlation will be green
- Low correlation level: Correlation lower threshold. If below, then the correlation will be red
If the correlation is between the high and low levels, then it will be displayed in orange
- FOREX/INDEX: You can choose between displaying the correlation matrix between 3 FOREX or 3 INDEX assets

Also...

So far the scale doesn't respond too well to the matrix so you'll have to adapt the scale manually. I'll publish a V2 if I'll find a way to solve this issue from the code directly #new #challenge

A quick final note on why I'm sharing so much?
It challenges me to think out of the norm, get out of my bubble and explore areas of Pinescript that I still don't know. This "a script a day" challenge allows me to speed up my learning curve on Pinescript by a billion factor (and I get a few interesting gigs as well)

Let's bring this indicator to 100 LIKES guys !!!!! I think it deserves it, don't you think? :)

PS
Before all copy/pasters will add a version with crypto tomorrow, don't bother, I already did it and will post it in a few minutes for FREE :p

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