Correlation Trade Setting Up Between EURCAD & USDCAD

19 Nis 2016

Current spread is 550 Pips, the widest since mid June 2015.

We will be going Long USDCAD & Short EURCAD

These pairs have been 70% to 96% correlated during the past year. Since they have been recently become uncorrelated we expect the correlation to return shortly.

EURCAD is approximately 25% more volatile than USDCAD therefore your position size for EURCAD should be approximately 70% - 80% your USDCAD position size.

Our algorithm is showing an 89% chance of USDCAD rising over the next 1 - 2 weeks.

21 Nis 2016

İşlem elle kapatılmış

We closed our correlation position picking about about 78 Pips. EURCAD short yielded +81.2 Pips while USDCAD yielded -3.1 Pips. Not bad for a low risk trade.