Does DigiCube depend on Bitcoin? According to the correlation analysis, BTC and CUBE 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 movements of both cryptocurrencies.
This coefficient may vary 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 assets are going in the opposite trend while the positive coefficient points that the prices are going in the identical direction. For instance, if Bitcoin and DigiCube connection is positively strong, it means that when BTC is growing CUBE will rise as well. The negative strong relation will indicate that when BTC is growing CUBE value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over DigiCube. If we take all the aspects affecting the price of CUBE 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 circumstances, such as media, events or politics.