Does DavorCoin depend on Bitcoin? According to the correlation analysis, BTC and DAV have a very strong positive relationship. The correlation coefficient of their values is 0.76, which was estimated based on the previous 100-days' price fluctuations of both assets.
This coefficient may change 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 cryptocurrencies are going in the reversed trend while the positive coefficient tells that the prices are going in the identical direction. For example, if Bitcoin and DavorCoin connection is positively strong, it means that when BTC is growing DAV will rise as well. The negative strong relation will show that when BTC is growing DAV value will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over DavorCoin. If we take all the factors affecting the price of DAV as 100%, then the share of BTC price among these factors will be 57.76%. The other part which is 42.24% covers all the other aspects, such as media, technological releases or regulations.