Does PAXEX depend on Bitcoin? Based on the correlation analysis, BTC and PAXEX have a strong positive relationship. The correlation coefficient of their prices is 0.63, which was calculated based on the previous 100-days' price movements 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 means that the prices of the currencies are going in the opposite direction while the positive coefficient points that the prices are moving in the identical trend. For instance, if Bitcoin and PAXEX connection is positively strong, it means that when BTC is growing PAXEX will grow as well. The negative strong relation will indicate that when BTC is growing PAXEX price will be in contrary lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over PAXEX. If we take all the factors affecting the price of PAXEX as 100%, then the share of BTC price among these factors will be 39.69%. The other part which is 60.31% covers all the other factors, such as news, events or regulations.