Does BitstarCoin depend on Bitcoin? According to the correlation analysis, BTC and BITS 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 movements of both cryptocurrencies.
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 opposite trend while the positive coefficient shows that the prices are going in the identical direction. For instance, if Bitcoin and BitstarCoin connection is positively strong, it means that when BTC is rising BITS will rise as well. The negative strong relation will show that when BTC is rising BITS price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BitstarCoin. If we take all the circumstances affecting the price of BITS 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 aspects, such as media, events or regulations.