Does PupaCoin depend on Bitcoin? According to the correlation analysis, BTC and PUPA have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the last 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 points that the prices of the assets are moving in the opposite trend while the positive coefficient points that the prices are moving in the same direction. For instance, if Bitcoin and PupaCoin connection is positively strong, it means that when BTC is rising PUPA will rise as well. The negative strong relation will indicate that when BTC is rising PUPA value will be in opposite lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over PupaCoin. If we take all the aspects affecting the price of PUPA 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 regulations.