Does Procom depend on Bitcoin? Based on the correlation analysis, BTC and PCM have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 100-days' price dynamics of both cryptocurrencies.
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 indicates that the prices of the assets are going in the contrary trend while the positive coefficient means that the prices are going in the same direction. For instance, if Bitcoin and Procom connection is positively strong, it means that when BTC is rising PCM will grow as well. The negative strong relation will show that when BTC is rising PCM value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Procom. If we take all the factors affecting the price of PCM 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 politics.