OPEN-SOURCE SCRIPT
Correlation Matrix + Heatmap - By Leviathan
A quick and easy way to visualize the correlation between 10 different symbols over a custom period of time, in the form of a matrix with a heatmap visualization and additional tools such as price increase/decrease %, multi-timeframe function, customizable appearance and more.
The indicator displays correlation coefficients for each pair of 10 assets in a matrix format, where the rows and columns represent the assets being compared between each other. The color of each cell corresponds with the strength of the correlation coefficient, allowing you to quickly identify which assets are strongly correlated, and which are not, and use that information to adjust risk or even get trade ideas. Coupled with the "Price Change" function, the script will help you find trade opportunities based on eg. the long-term correlation strength and short-term price direction differences between two assets. The "Correlation Length" input defines the number of bars used for calculating the correlation, while "Price Change Length" defines the bar to which the current price is compared when calculating price change (eg. the input 20 means that the script will compare the price of the candle close that occurred 20 bars ago and the current price).
Correlation coefficient:
The correlation coefficient is a statistical measure that quantifies the degree of linear relationship between two variables. The correlation coefficient ranges from -1 to 1, with 1 being perfect positive correlation and -1 being perfect negative correlation.
• A correlation coefficient of 1 indicates a perfect positive linear relationship between two variables. This means that when one variable increases, the other variable also increases in a proportional manner.
• A correlation coefficient of 0 indicates no linear relationship between two variables. This means that changes in one variable do not affect the other variable.
• A correlation coefficient of -1 indicates a perfect negative linear relationship between two variables. This means that when one variable increases, the other variable decreases in a proportional manner.
Inspired by RicardoSantos's script
The indicator displays correlation coefficients for each pair of 10 assets in a matrix format, where the rows and columns represent the assets being compared between each other. The color of each cell corresponds with the strength of the correlation coefficient, allowing you to quickly identify which assets are strongly correlated, and which are not, and use that information to adjust risk or even get trade ideas. Coupled with the "Price Change" function, the script will help you find trade opportunities based on eg. the long-term correlation strength and short-term price direction differences between two assets. The "Correlation Length" input defines the number of bars used for calculating the correlation, while "Price Change Length" defines the bar to which the current price is compared when calculating price change (eg. the input 20 means that the script will compare the price of the candle close that occurred 20 bars ago and the current price).
Correlation coefficient:
The correlation coefficient is a statistical measure that quantifies the degree of linear relationship between two variables. The correlation coefficient ranges from -1 to 1, with 1 being perfect positive correlation and -1 being perfect negative correlation.
• A correlation coefficient of 1 indicates a perfect positive linear relationship between two variables. This means that when one variable increases, the other variable also increases in a proportional manner.
• A correlation coefficient of 0 indicates no linear relationship between two variables. This means that changes in one variable do not affect the other variable.
• A correlation coefficient of -1 indicates a perfect negative linear relationship between two variables. This means that when one variable increases, the other variable decreases in a proportional manner.
Inspired by RicardoSantos's script
开源脚本
本着TradingView的真正精神，此脚本的创建者将其开源，以便交易者可以查看和验证其功能。向作者致敬！虽然您可以免费使用它，但请记住，重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神，此脚本的创建者将其开源，以便交易者可以查看和验证其功能。向作者致敬！虽然您可以免费使用它，但请记住，重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。