Does NewZealandCoin depend on Bitcoin? Based on the correlation analysis, BTC and NZC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, 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 going in the same trend. For instance, if Bitcoin and NewZealandCoin connection is positively strong, it means that when BTC is growing NZC will rise as well. The negative strong relation will point that when BTC is growing NZC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over NewZealandCoin. If we take all the circumstances affecting the price of NZC 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 aspects, such as media, technological releases or politics.