Pipruit: Right. And what is the second type table? Commander in Pips: The second kind of table creates for single pair but different time frames. It usually looks like this: In fact, you may use any terms for which you would like to calculate correlation, depending on your needs. If you are short-term trader, probably you will be interested in 1 week correlation, while if you hold position long-term, then you probably will need 6 moths or even a 1-2 year correlation. Pipruit: Ok, I see. The major thing that I have to note is that high numbers of correlation tells that pairs mostly move in the same direction while negative number close to -1 tells that they move equal but in counter directions. If correlation is close to zero – then there is an absence of any relation and pairs move independently. Commander in Pips: Yes, you’re absolutely right. But what will be application in trading? Pipruit: Hm… Really. How we can use it?