Does ChinaCoin depend on Bitcoin? Based on the correlation analysis, BTC and CNC have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was calculated based on the last 100-days' price movements of both cryptocurrencies.
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 tells that the prices of the currencies are moving in the opposite trend while the positive coefficient shows that the prices are going in the same trend. For instance, if Bitcoin and ChinaCoin connection is positively strong, it means that when BTC is growing CNC will rise as well. The negative strong relation will tell that when BTC is rising CNC value will be in opposite lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over ChinaCoin. If we take all the factors affecting the price of CNC 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 news, technological releases or politics.