Does HEROcoin depend on Bitcoin? Based on the correlation analysis, BTC and PLAY have a very strong positive relationship. The correlation coefficient of their values is 0.76, which was calculated based on the previous 100-days' price movements of both assets.
This coefficient may range 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 tells that the prices of the currencies are going in the opposite trend while the positive coefficient points that the prices are going in the identical trend. For instance, if Bitcoin and HEROcoin connection is positively strong, it means that when BTC is growing PLAY will rise as well. The negative strong relation will point that when BTC is growing PLAY value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over HEROcoin. If we take all the circumstances affecting the price of PLAY as 100%, then the share of BTC price among these factors will be 57.76%. The other part which is 42.24% covers all the other things, such as news, events or politics.