This new version now also include Beta Factor (the orange line). Now instead of just looking at correlations, you can also track the beta between an asset and a benchmark. Beta looks at how much an asset moves compared to a benchmark. For example Apple is one of the companies in the S&P500, and lets say that stock had a Beta Factor of 2. That would mean that for every 1 point move in the S&P, apple would move 2. This can be used for:
- Stocks and their respective indices
- Commodities and their respective indices
- Currencies (this is a little more difficult to do because there's no real index for currencies, but it can be done)
If the indicator is becoming too cluttered with all the correlations and Beta Factor, then just hide some of the lines.