Does Aeron depend on Bitcoin? According to the correlation analysis, BTC and ARN have a strong positive relationship. The correlation coefficient of their prices is 0.43, which was calculated 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 indicates that the prices of the currencies are going in the opposite trend while the positive coefficient indicates that the prices are going in the identical trend. For example, if Bitcoin and Aeron connection is positively strong, it means that when BTC is growing ARN will rise as well. The negative strong relation will tell that when BTC is growing ARN price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Aeron. If we take all the circumstances affecting the price of ARN as 100%, then the share of BTC price among these factors will be 18.49%. The other part which is 81.51% covers all the other factors, such as media, events or regulations.