Does CryptoWorldXToken depend on Bitcoin? Based on the correlation analysis, BTC and CWXT have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 100-days' price dynamics of both coins.
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 tells that the prices of the assets are going in the contrary direction while the positive coefficient means that the prices are moving in the identical trend. For instance, if Bitcoin and CryptoWorldXToken connection is positively strong, it means that when BTC is growing CWXT will grow as well. The negative strong relation will show that when BTC is growing CWXT price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over CryptoWorldXToken. If we take all the circumstances affecting the price of CWXT 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, technological releases or regulations.