Does Gems depend on Bitcoin? According to the correlation analysis, BTC and GEM have a very strong positive relationship. The correlation coefficient of their prices is 0.78, which was calculated based on the previous 100-days' price fluctuations of both coins.
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 shows that the prices of the currencies are going in the reversed direction while the positive coefficient indicates that the prices are going in the identical trend. For example, if Bitcoin and Gems connection is positively strong, it means that when BTC is rising GEM will rise as well. The negative strong relation will tell that when BTC is rising GEM value will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Gems. If we take all the aspects affecting the price of GEM as 100%, then the share of BTC price among these factors will be 60.84%. The other part which is 39.16% covers all the other factors, such as news, technological releases or regulations.