Does AlphaX depend on Bitcoin? Based on the correlation analysis, BTC and AX have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was calculated based on the last 100-days' price dynamics of both cryptocurrencies.
This coefficient may range 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 currencies are moving in the contrary trend while the positive coefficient tells that the prices are going in the same direction. For instance, if Bitcoin and AlphaX connection is positively strong, it means that when BTC is rising AX will grow as well. The negative strong relation will tell that when BTC is growing AX value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over AlphaX. If we take all the factors affecting the price of AX as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other things, such as news, events or regulations.