Does EtherLite depend on Bitcoin? According to the correlation analysis, BTC and ETL have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was calculated based on the previous 100-days' price movements of both coins.
This coefficient may vary 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 opposite direction while the positive coefficient means that the prices are going in the same direction. For instance, if Bitcoin and EtherLite connection is positively strong, it means that when BTC is rising ETL will rise as well. The negative strong relation will indicate that when BTC is rising ETL price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over EtherLite. If we take all the factors affecting the price of ETL 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 things, such as news, technological releases or politics.