Does GermanCoin depend on Bitcoin? According to the correlation analysis, BTC and GER have a weak positive relationship. The correlation coefficient of their prices is 0.26, which was calculated based on the previous 100-days' price dynamics of both currencies.
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 means that the prices of the currencies are going in the contrary direction while the positive coefficient tells that the prices are moving in the same trend. For example, if Bitcoin and GermanCoin connection is positively strong, it means that when BTC is rising GER will grow as well. The negative strong relation will point that when BTC is growing GER value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over GermanCoin. If we take all the circumstances affecting the price of GER as 100%, then the share of BTC price among these factors will be 6.76%. The other part which is 93.24% covers all the other aspects, such as media, technological releases or regulations.