Does BitalphaCoin depend on Bitcoin? According to the correlation analysis, BTC and BAC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was measured based on the last 100-days' price fluctuations of both currencies.
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 coins are moving in the reversed direction while the positive coefficient points that the prices are going in the identical direction. For instance, if Bitcoin and BitalphaCoin connection is positively strong, it means that when BTC is growing BAC will grow as well. The negative strong relation will indicate that when BTC is growing BAC price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BitalphaCoin. If we take all the aspects affecting the price of BAC 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 circumstances, such as media, events or regulations.