Does Ratecoin depend on Bitcoin? According to the correlation analysis, BTC and XRA have a moderate positive relationship. The correlation coefficient of their values is 0.31, which was estimated based on the previous 100-days' price dynamics of both assets.
This coefficient may vary 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 cryptocurrencies are going in the contrary trend while the positive coefficient indicates that the prices are going in the identical direction. For instance, if Bitcoin and Ratecoin connection is positively strong, it means that when BTC is growing XRA will rise as well. The negative strong relation will show that when BTC is rising XRA price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Ratecoin. If we take all the circumstances affecting the price of XRA as 100%, then the share of BTC price among these factors will be 9.61%. The other part which is 90.39% covers all the other circumstances, such as news, events or crypto related laws.