Does Canada eCoin depend on Bitcoin? According to the correlation analysis, BTC and CDN have a very strong positive relationship. The correlation coefficient of their prices is 0.83, which was computed based on the last 100-days' price movements of both cryptocurrencies.
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 shows that the prices of the assets are moving in the opposite trend while the positive coefficient tells that the prices are going in the same trend. For instance, if Bitcoin and Canada eCoin connection is positively strong, it means that when BTC is rising CDN will grow as well. The negative strong relation will tell that when BTC is rising CDN value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Canada eCoin. If we take all the circumstances affecting the price of CDN as 100%, then the share of BTC price among these factors will be 68.89%. The other part which is 31.11% covers all the other circumstances, such as news, events or crypto related laws.