Does CryptCoin depend on Bitcoin? Based on the correlation analysis, BTC and CRYPT have no or negligible relationship. The correlation coefficient of their prices is 0.10, which was estimated based on the previous 100-days' price fluctuations of both currencies.
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 shows that the prices of the cryptocurrencies are going in the reversed direction while the positive coefficient indicates that the prices are going in the same direction. For example, if Bitcoin and CryptCoin connection is positively strong, it means that when BTC is rising CRYPT will rise as well. The negative strong relation will indicate that when BTC is rising CRYPT price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over CryptCoin. If we take all the factors affecting the price of CRYPT as 100%, then the share of BTC price among these factors will be 1.00%. The other part which is 99.00% covers all the other circumstances, such as news, events or politics.