Does Dnotes depend on Bitcoin? According to the correlation analysis, BTC and NOTE 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 dynamics 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 shows that the prices of the assets are going in the contrary trend while the positive coefficient indicates that the prices are going in the identical trend. For instance, if Bitcoin and Dnotes connection is positively strong, it means that when BTC is rising NOTE will rise as well. The negative strong relation will tell that when BTC is growing NOTE value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Dnotes. If we take all the factors affecting the price of NOTE 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 news, technological releases or crypto related laws.