The first number line to correlate (e.g. the symbol you trade).
bBuffer (time series)
The second number line to compare against the first (e.g. a related symbol or index).
Outputs
Buffer (time series)
A line bounded between −1 and +1: above 0 the two series move together, below 0 they move oppositely, near 0 they are unrelated.
Rolling Correlation measures how closely two number lines move together over a sliding window, reporting a value from −1 to +1. Near +1 they rise and fall in step; near −1 one rises while the other falls; near 0 they barely relate.
How it works
On every bar it takes the last `period` values of inputs `a` and `b` and computes their Pearson correlation coefficient — the standardized co-movement of the two windows. A longer `period` smooths the reading and reacts slowly; a shorter one tracks recent shifts but jumps around.
Configuration
periodscalar
How many bars of each series the correlation looks back over. Larger gives a steadier, slower reading; smaller reacts faster but is noisier. A common starting point is 20–50 bars.
Connects to
Reads from
Feeds into
Examples
Risk filter: block a new EURUSD long when its 50-bar correlation with GBPUSD is above 0.8, so you don’t double up on the same bet.
Pairs setup: watch for the correlation between two normally-linked symbols to drop sharply, hinting the pair has decoupled.
Common mistakes
Reading correlation as cause — two series can move together by coincidence or because both follow a third driver, not because one moves the other.
Using too short a period, which makes the value flip between +1 and −1 on noise and gives a false sense of a stable relationship.