Question
The file P03_30.xlsx contains daily data on exchange rates of various currencies versus the U.S. dollar. It is of interest to financial analysts and economists
The file P03_30.xlsx contains daily data on exchange rates of various currencies versus the U.S. dollar. It is of interest to financial analysts and economists to see whether exchange rates move together through time. You could find the correlations between the exchange rates themselves, but it is often more useful with time-series data to check for correlations between differences from day to day.
a. Create a table of correlations between all of the original variables. Then on the same sheet, create a second table of correlations between the different variables. On this same sheet, enter two cutoff values, one positive such as 0.6 and one negative such as -0.5, and use conditional formatting to color all correlations (in both tables) above the positive cutoff green and all correlations below the negative cutoff red. Do it so that the 1s on the diagonal are not colored.
In the correlation table between all of the original currencies, how many correlations are negative? If your answer is zero, enter "0".
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