Does DigiEuro depend on Bitcoin? Based on the correlation analysis, BTC and DEUR have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the previous 100-days' price movements 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 means that the prices of the assets are going in the opposite trend while the positive coefficient means that the prices are moving in the identical trend. For example, if Bitcoin and DigiEuro connection is positively strong, it means that when BTC is rising DEUR will rise as well. The negative strong relation will indicate that when BTC is rising DEUR value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over DigiEuro. If we take all the things affecting the price of DEUR 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, technological releases or regulations.