Does Charm Coin depend on Bitcoin? According to the correlation analysis, BTC and CHARM have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was estimated based on the last 100-days' price fluctuations of both assets.
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 points that the prices of the cryptocurrencies are moving in the reversed trend while the positive coefficient tells that the prices are moving in the identical direction. For instance, if Bitcoin and Charm Coin connection is positively strong, it means that when BTC is rising CHARM will rise as well. The negative strong relation will show that when BTC is growing CHARM price will be in contrary lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Charm Coin. If we take all the circumstances affecting the price of CHARM 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 factors, such as news, events or regulations.