# FxPaul

Math in finance or vice versa

## Correlation trading on FX

Correlation trading is based on few simple ideas:

1. Correlations are changing with time
2. Correlations of pairs of 3 currencies are bounded by strict equation
3. Correlation is bound in the interval $[-1, 1]$

Therefore, one may try to “buy correlation” at -1 and to “sell it” at +1.