Correlation Exposure Calculator

Six-step workflow

1. Copy current values from the official account, platform, or journal.
2. Keep every unit consistent; do not mix ticks, points, pips, dollars, or percentages.
3. Enter the planning assumptions without changing them to force a preferred answer.
4. Calculate and read every output, including the warning below the headline number.
5. Verify instrument specifications and binding firm rules at the official source.
6. Save the result with its date and compare it with what actually happened.

Understand the output

Formula: Weighted stress keeps the largest position at full risk and weights remaining risks by the chosen correlation percentage.

Worked example: Risks of $200, $250, and $150 total $600. At an 80% weight, stress exposure is $250 + 80% of $350 = $530.

Common mistakes: treating correlation as stable, netting positions without scenario analysis, counting accounts as diversification, and ignoring pending orders.