Does BTC Lite depend on Bitcoin? According to the correlation analysis, BTC and BTCL have a strong positive relationship. The correlation coefficient of their prices is 0.65, which was calculated based on the last 100-days' price dynamics of both currencies.
This coefficient may vary 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 moving in the contrary direction while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and BTC Lite connection is positively strong, it means that when BTC is rising BTCL will grow as well. The negative strong relation will tell that when BTC is growing BTCL value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BTC Lite. If we take all the circumstances affecting the price of BTCL as 100%, then the share of BTC price among these factors will be 42.25%. The other part which is 57.75% covers all the other circumstances, such as media, events or regulations.