Does NEM depend on Bitcoin? Based on the correlation analysis, BTC and XEM have a very strong positive relationship. The correlation coefficient of their values is 0.76, which was estimated based on the last 100-days' price fluctuations of both coins.
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 tells that the prices of the cryptocurrencies are moving in the reversed direction while the positive coefficient points that the prices are going in the identical trend. For example, if Bitcoin and NEM connection is positively strong, it means that when BTC is rising XEM will grow as well. The negative strong relation will point that when BTC is growing XEM value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over NEM. If we take all the aspects affecting the price of XEM as 100%, then the share of BTC price among these factors will be 57.76%. The other part which is 42.24% covers all the other things, such as news, technological releases or politics.