Does Purpose Coin depend on Bitcoin? According to the correlation analysis, BTC and HLP have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was calculated based on the previous 100-days' price movements 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 tells that the prices of the currencies are going in the opposite trend while the positive coefficient shows that the prices are going in the same trend. For example, if Bitcoin and Purpose Coin connection is positively strong, it means that when BTC is growing HLP will rise as well. The negative strong relation will indicate that when BTC is rising HLP price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Purpose Coin. If we take all the things affecting the price of HLP 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, events or crypto related laws.