Does DigiCoin depend on Bitcoin? Based on the correlation analysis, BTC and DGC have a very strong positive relationship. The correlation coefficient of their prices is 0.87, which was computed based on the last 100-days' price fluctuations 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 assets are moving in the reversed trend while the positive coefficient means that the prices are moving in the identical direction. For instance, if Bitcoin and DigiCoin connection is positively strong, it means that when BTC is growing DGC will rise as well. The negative strong relation will point that when BTC is rising DGC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over DigiCoin. If we take all the things affecting the price of DGC as 100%, then the share of BTC price among these factors will be 75.69%. The other part which is 24.31% covers all the other things, such as news, technological releases or politics.