Does Eroscoin depend on Bitcoin? According to the correlation analysis, BTC and ERO have a strong positive relationship. The correlation coefficient of their values is 0.64, which was calculated based on the previous 100-days' price fluctuations of both cryptocurrencies.
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 indicates that the prices of the currencies are going in the reversed trend while the positive coefficient points that the prices are going in the same trend. For instance, if Bitcoin and Eroscoin connection is positively strong, it means that when BTC is growing ERO will grow as well. The negative strong relation will indicate that when BTC is rising ERO price will be in opposite lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Eroscoin. If we take all the circumstances affecting the price of ERO as 100%, then the share of BTC price among these factors will be 40.96%. The other part which is 59.04% covers all the other things, such as news, events or regulations.