Does FCoin depend on Bitcoin? Based on the correlation analysis, BTC and FX have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price movements of both assets.
This coefficient may adjust 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 cryptocurrencies are going in the opposite trend while the positive coefficient indicates that the prices are moving in the identical direction. For example, if Bitcoin and FCoin connection is positively strong, it means that when BTC is rising FX will rise as well. The negative strong relation will tell that when BTC is growing FX price will be in contrary lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over FCoin. If we take all the factors affecting the price of FX 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 politics.