Does JunkCoin depend on Bitcoin? According to the correlation analysis, BTC and JKC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was calculated based on the last 100-days' price movements of both currencies.
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 indicates that the prices of the currencies are moving in the opposite direction while the positive coefficient indicates that the prices are going in the same direction. For instance, if Bitcoin and JunkCoin connection is positively strong, it means that when BTC is rising JKC will grow as well. The negative strong relation will indicate that when BTC is growing JKC price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over JunkCoin. If we take all the factors affecting the price of JKC 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 news, technological releases or crypto related laws.