Does Digix DAO depend on Bitcoin? According to the correlation analysis, BTC and DGD have a very strong positive relationship. The correlation coefficient of their prices is 0.78, which was calculated based on the previous 100-days' price dynamics of both assets.
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 shows that the prices of the currencies are going in the contrary trend while the positive coefficient shows that the prices are moving in the same direction. For instance, if Bitcoin and Digix DAO connection is positively strong, it means that when BTC is growing DGD will grow as well. The negative strong relation will show that when BTC is rising DGD price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Digix DAO. If we take all the things affecting the price of DGD as 100%, then the share of BTC price among these factors will be 60.84%. The other part which is 39.16% covers all the other circumstances, such as media, technological releases or regulations.