Does Namacoin depend on Bitcoin? Based on the correlation analysis, BTC and NAM have a weak positive relationship. The correlation coefficient of their prices is 0.25, which was estimated based on the last 100-days' price movements 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 cryptocurrencies are moving in the opposite trend while the positive coefficient points that the prices are moving in the identical direction. For instance, if Bitcoin and Namacoin connection is positively strong, it means that when BTC is growing NAM will grow as well. The negative strong relation will tell that when BTC is rising NAM price will be in opposite lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Namacoin . If we take all the things affecting the price of NAM as 100%, then the share of BTC price among these factors will be 6.25%. The other part which is 93.75% covers all the other aspects, such as news, technological releases or politics.