#CurrencyPairPrediction Currency correlations describe the degree to which the price movements of one currency pair are statistically related to the price movements of another currency pair. A positive correlation indicates that two currency pairs tend to move in the same direction, while a negative correlation suggests they tend to move in opposite directions. The strength of the correlation is typically measured on a scale from -1 to +1, where +1 represents a perfect positive correlation, -1 represents a perfect negative correlation, and 0 indicates no correlation. Identifying currency correlations can be valuable for risk management and trading strategy. For instance, traders holding long positions in two positively correlated currency pairs are essentially increasing their overall exposure to the underlying market drivers. Conversely, holding positions in negatively correlated pairs can potentially hedge risk. Understanding the fundamental reasons behind correlations, such as shared economic dependencies or common base/quote currencies, is crucial, as these relationships can change over time due to evolving market conditions. Analyzing currency correlations can offer insights into potential trading opportunities and help in diversifying portfolios.