Does Equilibrium Coin depend on Bitcoin? Based on the correlation analysis, BTC and EQM have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was measured 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 coins are going in the contrary trend while the positive coefficient indicates that the prices are moving in the same trend. For example, if Bitcoin and Equilibrium Coin connection is positively strong, it means that when BTC is growing EQM will grow as well. The negative strong relation will show that when BTC is rising EQM value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Equilibrium Coin. If we take all the aspects affecting the price of EQM 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 factors, such as news, events or regulations.