Correlation analysis is used to determine the relationship between two variables. VAI uses Pearson Correlation Coefficient or PCC.
Pearson’s correlation coefficient is the test statistics that measures the statistical relationship, or association, between two continuous variables. It is known as the best method of measuring the association between variables of interest because it is based on the method of covariance. It gives information about the magnitude of the association, or correlation, as well as the direction of the relationship.
The function returns a value indicating the relationship between two variables. The variables may contain price, indicator values, or other values.
PCC(Input1, Input2, Period)
set correlation = PCC(High, Low, 14)