Does DomRaider depend on Bitcoin? Based on the correlation analysis, BTC and DRT have a strong positive relationship. The correlation coefficient of their prices is 0.50, which was computed based on the previous 100-days' price dynamics of both assets.
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 going in the contrary trend while the positive coefficient tells that the prices are going in the same direction. For instance, if Bitcoin and DomRaider connection is positively strong, it means that when BTC is rising DRT will rise as well. The negative strong relation will show that when BTC is rising DRT value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over DomRaider. If we take all the factors affecting the price of DRT as 100%, then the share of BTC price among these factors will be 25.00%. The other part which is 75.00% covers all the other circumstances, such as news, events or crypto related laws.