Does GlowShares depend on Bitcoin? According to the correlation analysis, BTC and GSX have a very strong positive relationship. The correlation coefficient of their values is 0.90, which was computed based on the previous 100-days' price dynamics of both cryptocurrencies.
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 points that the prices of the assets are going in the contrary trend while the positive coefficient tells that the prices are moving in the identical direction. For instance, if Bitcoin and GlowShares connection is positively strong, it means that when BTC is rising GSX will rise as well. The negative strong relation will indicate that when BTC is growing GSX price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over GlowShares. If we take all the factors affecting the price of GSX as 100%, then the share of BTC price among these factors will be 81.00%. The other part which is 19.00% covers all the other circumstances, such as media, events or politics.