Bitcoin and NKN Correlation

Does NKN depend on Bitcoin? Based on the correlation analysis, BTC and NKN have a moderate positive relationship. The correlation coefficient of their prices is 0.32, which was estimated based on the last 100-days' price dynamics of both assets.

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 means that the prices of the cryptocurrencies are moving in the contrary trend while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and NKN connection is positively strong, it means that when BTC is growing NKN will rise as well. The negative strong relation will point that when BTC is rising NKN price will be in opposite decreasing.

The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over NKN. If we take all the aspects affecting the price of NKN as 100%, then the share of BTC price among these factors will be 10.24%. The other part which is 89.76% covers all the other circumstances, such as news, technological releases or crypto related laws.