Does IMMLA depend on Bitcoin? Based on the correlation analysis, BTC and IML have a strong positive relationship. The correlation coefficient of their values is 0.68, which was estimated based on the previous 100-days' price fluctuations 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 cryptocurrencies are going in the reversed trend while the positive coefficient shows that the prices are moving in the identical direction. For instance, if Bitcoin and IMMLA connection is positively strong, it means that when BTC is rising IML will rise as well. The negative strong relation will tell that when BTC is rising IML price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over IMMLA. If we take all the factors affecting the price of IML as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other circumstances, such as news, technological releases or politics.