Does PizzaCoin depend on Bitcoin? According to the correlation analysis, BTC and PIZZA have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the previous 100-days' price dynamics of both cryptocurrencies.
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 means that the prices of the assets are going in the contrary trend while the positive coefficient shows that the prices are going in the identical direction. For instance, if Bitcoin and PizzaCoin connection is positively strong, it means that when BTC is growing PIZZA will rise as well. The negative strong relation will indicate that when BTC is growing PIZZA value will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over PizzaCoin. If we take all the factors affecting the price of PIZZA as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other aspects, such as news, events or crypto related laws.