EURGBP vs EURJPY Correlation

3M correlation of EURGBP vs EURJPY is 0.14, weak or mixed.

Long EURGBP and long EURJPY can be two tickets on a similar move when the reading is high. Tap another cell for a different pair URL.

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EURGBP vs EURJPY: 0.14, weak or mixed.

Pearson correlation of daily percent changes. Not a forecast and not your broker’s feed.

EURGBP and EURJPY correlation explained

EURGBP is the euro quoted in British pounds. EURJPY is the euro quoted in Japanese yen.

EURGBP and EURJPY share the same base currency, euro. A stronger EUR lifts both pairs. Dividing one by the other cancels the EUR leg: EURGBP ÷ EURJPY = the JPY/GBP rate, so what pulls them apart is the JPY against the GBP.

On the 3M window shown above, EURGBP vs EURJPY reads 0.14: weak or mixed.

How to use EURGBP EURJPY correlation for risk

  1. Pick a window. 1M reacts fast to news and is noisy; 3M is a common default; 6M and 1Y show the slower background link.
  2. Read the number. At 0.7 or above the two have moved strongly together, at minus 0.7 or below strongly opposite, and between minus 0.3 and 0.3 the link is weak or mixed.
  3. Size accordingly. If you plan to buy both EURGBP and EURJPY and the reading is strongly positive, treat them as one position and split your usual risk between them. A long in one and a short in the other on a strongly positive pair partly cancel out.

Common correlation mistakes

  • Treating correlation as a constant. It changes with news, central banks and market regimes, so recheck it before each trade.
  • Assuming correlated means the same size move. EURGBP and EURJPY can move in the same direction by different amounts, and their pip values differ, so size each one from its own stop.
  • Using a negative pair as a perfect hedge. A hedge that only works part of the time still costs two spreads.
  • Reading a 1M number right after a big event as the new normal. Compare it with 3M and 6M first.

Educational content, not investment advice. Trading leveraged products such as CFDs and forex carries a high risk of losing money.

Frequently Asked Questions

On the 3M window shown above, EURGBP vs EURJPY reads 0.14: weak or mixed. Correlation runs from minus 1 (always opposite) to plus 1 (always together). Switch between 1M, 3M, 6M and 1Y above for other windows.
EURGBP and EURJPY share the same base currency, euro. A stronger EUR lifts both pairs. Dividing one by the other cancels the EUR leg: EURGBP ÷ EURJPY = the JPY/GBP rate, so what pulls them apart is the JPY against the GBP. On the 3M window shown above, EURGBP vs EURJPY reads 0.14: weak or mixed.
On the 3M window the reading is weak or mixed (0.14).
If the reading is strongly positive and you want to buy both, treat them as one bigger position and split your usual risk between them. If it is strongly negative, a long in both partly offsets. Always size each trade from its own stop.
Shorter windows react faster and are noisier. 1M or 3M is a common default for active trading; 6M and 1Y show the slower background link. Correlation can flip around big news.
Pearson correlation of daily percent changes from daily ECB reference rates (via Frankfurter), used to rebuild each pair, over 1M (31 days), 3M (93 days), 6M (186 days), 1Y (370 days). It is a map of how they behaved, not a forecast or a broker quote.

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