Does Quant depend on Bitcoin? According to the correlation analysis, BTC and QNT have a very strong positive relationship. The correlation coefficient of their values is 0.74, which was computed 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 points that the prices of the assets are going in the opposite trend while the positive coefficient indicates that the prices are moving in the identical direction. For instance, if Bitcoin and Quant connection is positively strong, it means that when BTC is growing QNT will rise as well. The negative strong relation will point that when BTC is rising QNT price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Quant. If we take all the factors affecting the price of QNT as 100%, then the share of BTC price among these factors will be 54.76%. The other part which is 45.24% covers all the other factors, such as news, technological releases or regulations.