Does LiteCoinW Plus depend on Bitcoin? Based on the correlation analysis, BTC and LCWP 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 dynamics of both assets.
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 moving in the contrary trend while the positive coefficient shows that the prices are moving in the same trend. For instance, if Bitcoin and LiteCoinW Plus connection is positively strong, it means that when BTC is rising LCWP will rise as well. The negative strong relation will show that when BTC is rising LCWP value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over LiteCoinW Plus. If we take all the things affecting the price of LCWP 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 media, events or regulations.