Does CannabisCoin depend on Bitcoin? Based on the correlation analysis, BTC and CANN have no or negligible relationship. The correlation coefficient of their prices is 0.12, which was calculated based on the previous 100-days' price fluctuations 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 shows that the prices of the currencies are going in the reversed direction while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and CannabisCoin connection is positively strong, it means that when BTC is rising CANN will rise as well. The negative strong relation will tell that when BTC is growing CANN value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over CannabisCoin. If we take all the circumstances affecting the price of CANN as 100%, then the share of BTC price among these factors will be 1.44%. The other part which is 98.56% covers all the other things, such as news, technological releases or crypto related laws.