Does FrazCoin depend on Bitcoin? Based on the correlation analysis, BTC and FRAZ have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was estimated based on the last 100-days' price movements of both currencies.
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 points that the prices of the cryptocurrencies are moving in the opposite direction while the positive coefficient tells that the prices are moving in the identical direction. For example, if Bitcoin and FrazCoin connection is positively strong, it means that when BTC is growing FRAZ will rise as well. The negative strong relation will show that when BTC is rising FRAZ price will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over FrazCoin. If we take all the aspects affecting the price of FRAZ 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 aspects, such as news, technological releases or politics.