Does BABB depend on Bitcoin? Based on the correlation analysis, BTC and BAX have a very strong positive relationship. The correlation coefficient of their prices is 0.73, which was calculated based on the previous 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 going in the contrary trend while the positive coefficient points that the prices are going in the same trend. For instance, if Bitcoin and BABB connection is positively strong, it means that when BTC is rising BAX will rise as well. The negative strong relation will point that when BTC is growing BAX price will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over BABB. If we take all the circumstances affecting the price of BAX as 100%, then the share of BTC price among these factors will be 53.29%. The other part which is 46.71% covers all the other circumstances, such as media, technological releases or politics.