Canadian Currency | Currency Trading | Exchange Rates | Currency Trading Conversion

Currency Trading Conversion

Filed Under Currency Trading |

Current Position
- ‘Last’ is the most recent comparison between values of one local currency and a foreign currency. For example if one Canadian loonie can buy two British pounds the ‘last’ value is 0.5. If a unit of Canadian currency can buy half of a European euro then the value is 2.
- ‘Index’ is the position of the Canadian dollar relative to it’s highs and lows. It’s low value is 0, and the high is 100. If the ‘last’ low was 0.5 and the high was and is currently worth 0.9, all relative to the US dollar then the index position is 80. This shows an upward currency trading trend.
- ‘Bandwidth’ is the percentage difference of the year high relative to the one year low. If the one year high last value was 1.25 and the low was then the bandwidth of the Canadian currency was 25% because * 1.25(25%) 1.25.


Appreciation
- ‘Change’ refers to the appreciation or deprecation of the Canadian loonie against a foreign currency. A positive number refers to appreciation and negative numbers refers to deprecation. The Canadian dollar going up from to 1.16 against the US dollar ‘last’ vale is a change of 16.
- ‘Change Index’ is the current value of the Canadian currency relative to it’s value one year ago. The past year value is 100 so if the ‘change’ this year was 16 then the ‘change index’ is 116.

Volatility
- ‘Volatility’ is the standard deviation of the one day percentage change.
- ‘Volatility Index’ is the ratio of the 30-day and 100-day volatility measure times 100. A number over 100 shows increasing volatility, less than 100 shows a decrease.

Comovements
- ‘Comovements’ shows the correlation between the currency unit and foreign currency. The less two currencies are correlated the more diverse they are. If they are well correlated then they are not useful for diversification purposes. The coefficient is a number between -1 and 1. If a diverse portfolio is desired a low number is wanted, if a undiverse portfolio is wanted then you need a high Comovements value.

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