Correlation matrix
Pairs with a correlation near +1 move together; near −1 they move opposite. Two trades on strongly correlated pairs are close to one bigger trade.
How it is worked out
Pearson correlation of daily log returns, computed from European Central Bank reference rates over the chosen window.
Questions
Why does correlation matter for risk?
Buying EUR/USD and GBP/USD together often doubles the same bet against the dollar. Count correlated positions as one when you size your total risk.