Does MasterCoin depend on Bitcoin? According to the correlation analysis, BTC and MSC have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 100-days' price fluctuations of both cryptocurrencies.
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 points that the prices of the assets are going in the reversed trend while the positive coefficient points that the prices are moving in the identical direction. For instance, if Bitcoin and MasterCoin connection is positively strong, it means that when BTC is rising MSC will grow as well. The negative strong relation will indicate that when BTC is rising MSC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over MasterCoin. If we take all the things affecting the price of MSC 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, technological releases or regulations.