Does Absolute Coin depend on Bitcoin? Based on the correlation analysis, BTC and ABS have a strong positive relationship. The correlation coefficient of their values is 0.68, which was computed based on the last 100-days' price movements of both currencies.
This coefficient may adjust from -1 to 1, where -1 is the strongest negative correlation, 0 is no correlation at all and 1 is the strongest positive correlation.
The negative coefficient tells that the prices of the assets are moving in the opposite direction while the positive coefficient tells that the prices are going in the identical trend. For instance, if Bitcoin and Absolute Coin connection is positively strong, it means that when BTC is growing ABS will grow as well. The negative strong relation will point that when BTC is rising ABS value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Absolute Coin. If we take all the circumstances affecting the price of ABS as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other circumstances, such as news, events or regulations.