Does IOU1 depend on Bitcoin? Based on the correlation analysis, BTC and IOU have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was calculated 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 shows that the prices of the currencies are going in the opposite trend while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and IOU1 connection is positively strong, it means that when BTC is rising IOU will rise as well. The negative strong relation will show that when BTC is growing IOU value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over IOU1. If we take all the things affecting the price of IOU 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 aspects, such as media, events or regulations.