Cross Asset Correlation Engine

The Market Correlation Matrix helps traders quickly see how assets tend to move together. Enter the Chg% of a driver (for example, DXY −1.0) and the Matrix projects which markets are most likely to rise or fall. Use it to anticipate flows, confirm setups, and sharpen your trading edge.

Below is TradingView Market Data (semi real-time). Grab the current Chg% for major instruments, then enter that value into the Matrix.

Market data by TradingView

Market Correlation Matrix

Type the observed move in a driver (e.g., DXY −1.0). The engine projects likely up/down moves using pre-defined correlation signs and elasticities (no live data required).
Enter percent (no % sign). Negative = down.
Likely ↑
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Likely ↓
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Details
Signs/elasticities are heuristic, based on long-term cross-asset tendencies. Correlations shift by regime and news. Use for context, not trading signals.

Understanding Primary Drivers

While the US Dollar Index (DXY) is often the most important driver for global flows, it isn’t the only one. Depending on the day and the news cycle, other assets can take the lead:

  • Bond Yields (TNX) — Rising yields pressure tech and growth stocks, falling yields support them.
  • Commodities — Oil and Copper can drive currencies like CAD, AUD, and EM equities.
  • News Events — CPI, Non-Farm Payrolls, Fed decisions, and earnings from mega-cap stocks can temporarily flip correlations or make one asset the dominant driver.
  • Risk Sentiment — Shocks (geopolitical, banking stress, volatility spikes) shift flows rapidly into safe havens like USD, JPY, Treasuries, and Gold.

Use the Matrix to think in terms of money flow: when one market moves, ask where the capital is coming from and where it is going next. Over time, you’ll spot repeating patterns that sharpen your trading edge.


Disclaimer

This tool is provided for educational and informational purposes only. It is not financial advice or a recommendation to trade. Markets are dynamic and correlations change with time and context. Always combine this analysis with your own research, strategy, and risk management before making trading decisions.

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