Does GoodCoin depend on Bitcoin? According to the correlation analysis, BTC and GOOD have a very strong positive relationship. The correlation coefficient of their values is 0.91, 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 means that the prices are going in the identical direction. For example, if Bitcoin and GoodCoin connection is positively strong, it means that when BTC is growing GOOD will rise as well. The negative strong relation will tell that when BTC is rising GOOD price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over GoodCoin. If we take all the circumstances affecting the price of GOOD 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 things, such as media, technological releases or regulations.