A currency correlation in forex is a positive or negative relationship between two separate currency pairs. A positive correlation means that two currency pairs move in tandem, and a negative correlation means that they move in opposite directions.
Correlations can provide opportunities to realize a more significant profit, or they could be used to hedge your forex positions and risk exposure. Suppose you can be confident that one currency pair will move alongside or against another.
Feel free to trade on forex pair correlations by recognizing which currency pairs have a significant positive or negative correlation to each other. In the conventional sense, you would open two of the same positions if the correlation was positive or two opposing positions if the correlation was negative.