You can understand my reason for concern, considering this observation below:


That all said, correlation trading has been more challenging these last two months as I have seen a periodic complete breakdown in the EURUSD/USDCHF correlation, as well as every other one I track. Check out the attached chart to see what I mean. EURUSD/USDCHF is historically strongly negatively correlated (-1) yet I have watched it go completely random (0) and even close to a strong positive correlation at times. This always happens to some degree, but it has happened far more often recently, and sustained the counter-historical correlation longer.