Does PayFair depend on Bitcoin? Based on the correlation analysis, BTC and PFR have a very strong positive relationship. The correlation coefficient of their values is 0.83, which was calculated based on the last 100-days' price movements 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 tells that the prices of the currencies are moving in the opposite trend while the positive coefficient points that the prices are going in the identical trend. For example, if Bitcoin and PayFair connection is positively strong, it means that when BTC is rising PFR will grow as well. The negative strong relation will show that when BTC is growing PFR value will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over PayFair. If we take all the aspects affecting the price of PFR as 100%, then the share of BTC price among these factors will be 68.89%. The other part which is 31.11% covers all the other factors, such as media, technological releases or regulations.