I've done google search with the key words hedge ratio, formula, equation, correlation, as suggested by bwilhite. But none of the formulas (Sharpe, Black-Scholes, Delta, Optimal formula) I found is relevant to the computations we are looking for, even if it does, it is not for an average mathematician to compute it. If it were that easy... no one will pay a monthly subscription fee for Freedomrocks, forexforsmarties, forex-assistant. Hope someone can point me to the right web site to get the right computation.

Atonix, If its not too much to ask. Can you post the formula here? Spliting ratios between pairs is easy, but what I like to know is how they add the correlation coefficient ratio to their computation and what (time) period do they use.

I'll pay a visit directly to the person who recommended that hedge calculator to our chief mechanic (Fred), and see if I can get some answers to your questions. Be back later. Ciao!