How to use ARRAYS in Pine Script V4 to calculate CORRELATION & COVARIANCE

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Source Code: https://courses.theartoftrading.com/pages/pine-script-mastery-source-code#correlation

Lesson Resources:
TradingView Array Blog: https://www.tradingview.com/blog/en/arrays-are-now-available-in-pine-script-20052/
TradingView Array Documentation: https://www.tradingview.com/pine-script-docs/en/v4/essential/Arrays.html#introduction
Array Diagram: https://media.geeksforgeeks.org/wp-content/uploads/C-Arrays.jpg
FIFO/Stack Diagram: https://4cawmi2va33i3w6dek1d7y1m-wpengine.netdna-ssl.com/wp-content/uploads/2018/07/Computer-science-fundamentals_6.1.png
Covariance Definition: https://www.investopedia.com/terms/c/covariance.asp
Correlation Definition: https://www.investopedia.com/terms/c/correlationcoefficient.asp

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This lesson demonstrates how to use array functions in Pine Script to calculate the correlation coefficient (and covariance) of two different markets.

With over 15 years of coding experience and 4+ years of trading experience, I specialize in TradingView’s Pine Script programming language and I’m here to pass on everything I’ve learned about both trading and coding.

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▼Timestamps▼
00:00 – Intro
04:30 – What Are Arrays?
06:35 – Get User Input
08:40 – Calculate % Change of Markets
12:55 – Declaring A Float Array
16:45 – FIFO vs Stack Arrays
17:57 – Adding Data to an Array
20:20 – What is Covariance?
21:10 – Calculating Array Covariance
24:56 – What is the Correlation Coefficient?
27:10 – Getting Array’s Standard Deviation
28:19 – Calculating Array Correlation
29:33 – Summary & Analysis
35:08 – PineScriptMastery.com

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