Does NameCoin depend on Bitcoin? According to the correlation analysis, BTC and NMC have a very strong positive relationship. The correlation coefficient of their prices is 0.88, which was computed based on the previous 100-days' price movements 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 means that the prices of the assets are going in the opposite trend while the positive coefficient indicates that the prices are moving in the identical direction. For instance, if Bitcoin and NameCoin connection is positively strong, it means that when BTC is growing NMC will grow as well. The negative strong relation will tell that when BTC is rising NMC price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over NameCoin. If we take all the things affecting the price of NMC as 100%, then the share of BTC price among these factors will be 77.44%. The other part which is 22.56% covers all the other things, such as news, technological releases or regulations.