Does NovaCoin depend on Bitcoin? Based on the correlation analysis, BTC and NVC have a very strong positive relationship. The correlation coefficient of their values is 0.90, which was measured 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 points that the prices of the coins are moving in the contrary trend while the positive coefficient points that the prices are moving in the same direction. For example, if Bitcoin and NovaCoin connection is positively strong, it means that when BTC is rising NVC will grow as well. The negative strong relation will tell that when BTC is growing NVC price will be in contrary lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over NovaCoin. If we take all the things affecting the price of NVC as 100%, then the share of BTC price among these factors will be 81.00%. The other part which is 19.00% covers all the other factors, such as news, events or crypto related laws.