Does Acorn Collective depend on Bitcoin? According to the correlation analysis, BTC and OAK have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was estimated based on the previous 100-days' price movements of both assets.
This coefficient may change 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 shows that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient means that the prices are going in the identical trend. For instance, if Bitcoin and Acorn Collective connection is positively strong, it means that when BTC is growing OAK will grow as well. The negative strong relation will tell that when BTC is rising OAK price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Acorn Collective. If we take all the factors affecting the price of OAK 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 things, such as media, technological releases or crypto related laws.