Does Elementrem depend on Bitcoin? Based on the correlation analysis, BTC and ELE have a very strong positive relationship. The correlation coefficient of their prices is 0.90, which was calculated based on the previous 100-days' price dynamics of both assets.
This coefficient may adjust 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 going in the identical trend. For instance, if Bitcoin and Elementrem connection is positively strong, it means that when BTC is growing ELE will rise as well. The negative strong relation will indicate that when BTC is rising ELE price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Elementrem. If we take all the factors affecting the price of ELE as 100%, then the share of BTC price among these factors will be 81.00%. The other part which is 19.00% covers all the other things, such as news, technological releases or regulations.