Does Legends Cryptocurrency depend on Bitcoin? According to the correlation analysis, BTC and LGD 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 fluctuations of both assets.
This coefficient may change 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 currencies are going in the reversed trend while the positive coefficient tells that the prices are going in the identical direction. For instance, if Bitcoin and Legends Cryptocurrency connection is positively strong, it means that when BTC is rising LGD will rise as well. The negative strong relation will indicate that when BTC is rising LGD price will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Legends Cryptocurrency. If we take all the factors affecting the price of LGD 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 factors, such as news, technological releases or politics.