Does OrangeCoin depend on Bitcoin? According to the correlation analysis, BTC and OC have a strong positive relationship. The correlation coefficient of their values is 0.68, which was calculated based on the previous 100-days' price movements of both assets.
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 tells that the prices of the currencies are going in the opposite trend while the positive coefficient indicates that the prices are moving in the identical trend. For instance, if Bitcoin and OrangeCoin connection is positively strong, it means that when BTC is rising OC will rise as well. The negative strong relation will indicate that when BTC is rising OC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over OrangeCoin. If we take all the things affecting the price of OC as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other factors, such as media, technological releases or politics.