Does EuropeCoin depend on Bitcoin? According to the correlation analysis, BTC and ERC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the previous 100-days' price fluctuations of both assets.
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 means that the prices of the assets are going in the reversed trend while the positive coefficient tells that the prices are moving in the identical trend. For example, if Bitcoin and EuropeCoin connection is positively strong, it means that when BTC is growing ERC will grow as well. The negative strong relation will indicate that when BTC is growing ERC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over EuropeCoin. If we take all the factors affecting the price of ERC 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 circumstances, such as media, technological releases or regulations.