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Geometrically we introduce a tetrahedron with triangular sides whose corners are the four currencies GBP USD JPY EUR. The six edge vectors will be labeled i with lengths i and the direction is always from FX1 to FX2 if the FX rate is named FX1/FX2. For instance to compute the correlation between GBP/JPY and EUR/USD we inflate the market of these two currency pairs to the following market of six currency pairs St GBP/USD St USD/JPY St GBP/JPY St EUR/USD St EUR/GBP and St EUR/JPY denoting by i...
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