Does NevaCoin depend on Bitcoin? Based on the correlation analysis, BTC and NEVA have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was calculated based on the previous 100-days' price fluctuations of both cryptocurrencies.
This coefficient may range 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 currencies are going in the reversed trend while the positive coefficient indicates that the prices are moving in the same direction. For instance, if Bitcoin and NevaCoin connection is positively strong, it means that when BTC is growing NEVA will rise as well. The negative strong relation will show that when BTC is rising NEVA price will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over NevaCoin. If we take all the factors affecting the price of NEVA 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 media, events or crypto related laws.