Does Ellerium depend on Bitcoin? According to the correlation analysis, BTC and ELP have a very strong positive relationship. The correlation coefficient of their values is 0.81, which was calculated based on the previous 100-days' price fluctuations 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 tells that the prices of the currencies are going in the reversed trend while the positive coefficient means that the prices are moving in the same direction. For example, if Bitcoin and Ellerium connection is positively strong, it means that when BTC is growing ELP will rise as well. The negative strong relation will point that when BTC is rising ELP price will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Ellerium. If we take all the things affecting the price of ELP as 100%, then the share of BTC price among these factors will be 65.61%. The other part which is 34.39% covers all the other things, such as news, technological releases or crypto related laws.