Does Kronecoin depend on Bitcoin? Based on the correlation analysis, BTC and KRONE have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was measured based on the previous 100-days' price movements of both cryptocurrencies.
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 coins are going in the opposite trend while the positive coefficient indicates that the prices are going in the identical trend. For instance, if Bitcoin and Kronecoin connection is positively strong, it means that when BTC is growing KRONE will grow as well. The negative strong relation will point that when BTC is rising KRONE value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Kronecoin. If we take all the factors affecting the price of KRONE 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 circumstances, such as media, events or regulations.