Does Compound Coin depend on Bitcoin? Based on the correlation analysis, BTC and COMP have a strong positive relationship. The correlation coefficient of their values is 0.68, which was calculated based on the last 100-days' price movements of both cryptocurrencies.
This coefficient may range 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 indicates that the prices of the currencies are moving in the opposite trend while the positive coefficient indicates that the prices are moving in the same direction. For example, if Bitcoin and Compound Coin connection is positively strong, it means that when BTC is growing COMP will rise as well. The negative strong relation will tell that when BTC is growing COMP value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Compound Coin. If we take all the aspects affecting the price of COMP as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other factors, such as news, events or crypto related laws.