Does PCHAIN depend on Bitcoin? According to the correlation analysis, BTC and PAI have a very strong positive relationship. The correlation coefficient of their prices is 0.79, which was estimated based on the previous 100-days' price dynamics of both currencies.
This coefficient may change 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 cryptocurrencies are going in the contrary direction while the positive coefficient indicates that the prices are going in the identical direction. For example, if Bitcoin and PCHAIN connection is positively strong, it means that when BTC is rising PAI will grow as well. The negative strong relation will show that when BTC is growing PAI value will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over PCHAIN. If we take all the factors affecting the price of PAI as 100%, then the share of BTC price among these factors will be 62.41%. The other part which is 37.59% covers all the other circumstances, such as media, events or crypto related laws.