Does BitBay depend on Bitcoin? Based on the correlation analysis, BTC and BAY have a strong positive relationship. The correlation coefficient of their prices is 0.48, which was calculated based on the previous 100-days' price movements of both cryptocurrencies.
This coefficient may adjust 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 means that the prices of the currencies are going in the opposite trend while the positive coefficient shows that the prices are going in the same trend. For instance, if Bitcoin and BitBay connection is positively strong, it means that when BTC is rising BAY will grow as well. The negative strong relation will show that when BTC is rising BAY price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over BitBay. If we take all the factors affecting the price of BAY as 100%, then the share of BTC price among these factors will be 23.04%. The other part which is 76.96% covers all the other aspects, such as news, events or politics.