Does PlusCoin depend on Bitcoin? According to the correlation analysis, BTC and PLC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price movements of both assets.
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 shows that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient tells that the prices are moving in the identical trend. For instance, if Bitcoin and PlusCoin connection is positively strong, it means that when BTC is growing PLC will grow as well. The negative strong relation will show that when BTC is rising PLC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over PlusCoin. If we take all the factors affecting the price of PLC 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 circumstances, such as media, events or crypto related laws.