Does Covesting depend on Bitcoin? Based on the correlation analysis, BTC and COV have a strong positive relationship. The correlation coefficient of their values is 0.68, which was estimated based on the previous 100-days' price dynamics of both assets.
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 points that the prices of the cryptocurrencies are going in the contrary trend while the positive coefficient indicates that the prices are moving in the identical trend. For example, if Bitcoin and Covesting connection is positively strong, it means that when BTC is growing COV will rise as well. The negative strong relation will point that when BTC is growing COV value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Covesting. If we take all the things affecting the price of COV 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 politics.