Does KATZcoin depend on Bitcoin? Based on the correlation analysis, BTC and KAT have a strong positive relationship. The correlation coefficient of their prices is 0.58, which was computed based on the previous 100-days' price fluctuations of both coins.
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 means that the prices of the assets are going in the reversed direction while the positive coefficient shows that the prices are moving in the identical trend. For example, if Bitcoin and KATZcoin connection is positively strong, it means that when BTC is rising KAT will grow as well. The negative strong relation will show that when BTC is rising KAT value will be in contrary lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over KATZcoin. If we take all the aspects affecting the price of KAT as 100%, then the share of BTC price among these factors will be 33.64%. The other part which is 66.36% covers all the other aspects, such as news, events or politics.