Does BitGem depend on Bitcoin? Based on the correlation analysis, BTC and BTG* have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the last 100-days' price dynamics of both currencies.
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 indicates that the prices of the assets are moving in the contrary direction while the positive coefficient shows that the prices are moving in the identical direction. For example, if Bitcoin and BitGem connection is positively strong, it means that when BTC is rising BTG* will grow as well. The negative strong relation will point that when BTC is rising BTG* price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over BitGem. If we take all the aspects affecting the price of BTG* 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, technological releases or regulations.