Does Halal-Chain depend on Bitcoin? Based on the correlation analysis, BTC and HLC have a very strong positive relationship. The correlation coefficient of their values is 0.89, which was computed based on the previous 100-days' price movements of both cryptocurrencies.
This coefficient may adjust 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 indicates that the prices of the assets are going in the opposite trend while the positive coefficient means that the prices are going in the same direction. For example, if Bitcoin and Halal-Chain connection is positively strong, it means that when BTC is growing HLC will rise as well. The negative strong relation will point that when BTC is growing HLC value will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Halal-Chain. If we take all the circumstances affecting the price of HLC as 100%, then the share of BTC price among these factors will be 79.21%. The other part which is 20.79% covers all the other factors, such as news, events or politics.