Does PAX Token depend on Bitcoin? Based on the correlation analysis, BTC and PAX have a moderate negative relationship. The correlation coefficient of their prices is -0.31, which was computed based on the last 100-days' price fluctuations of both currencies.
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 indicates that the prices of the assets are moving in the reversed direction while the positive coefficient means that the prices are moving in the identical direction. For example, if Bitcoin and PAX Token connection is positively strong, it means that when BTC is rising PAX will rise as well. The negative strong relation will indicate that when BTC is growing PAX value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over PAX Token. If we take all the factors affecting the price of PAX as 100%, then the share of BTC price among these factors will be 9.61%. The other part which is 90.39% covers all the other circumstances, such as media, technological releases or crypto related laws.