Does NetworkCoin depend on Bitcoin? According to the correlation analysis, BTC and NETC have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was estimated based on the last 100-days' price movements of both currencies.
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 cryptocurrencies are moving in the opposite direction while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and NetworkCoin connection is positively strong, it means that when BTC is rising NETC will grow as well. The negative strong relation will indicate that when BTC is rising NETC price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over NetworkCoin. If we take all the factors affecting the price of NETC 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 factors, such as news, technological releases or regulations.