Does PrismChain depend on Bitcoin? Based on the correlation analysis, BTC and PRM have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the last 100-days' price dynamics 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 shows that the prices of the cryptocurrencies are moving in the contrary direction while the positive coefficient points that the prices are going in the identical trend. For example, if Bitcoin and PrismChain connection is positively strong, it means that when BTC is rising PRM will rise as well. The negative strong relation will tell that when BTC is growing PRM value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over PrismChain. If we take all the aspects affecting the price of PRM 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 media, technological releases or regulations.