Does RED MegaWatt depend on Bitcoin? According to the correlation analysis, BTC and MWAT have a strong positive relationship. The correlation coefficient of their prices is 0.63, which was estimated based on the last 100-days' price fluctuations of both currencies.
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 indicates that the prices of the cryptocurrencies are moving in the reversed direction while the positive coefficient points that the prices are going in the same direction. For instance, if Bitcoin and RED MegaWatt connection is positively strong, it means that when BTC is rising MWAT will grow as well. The negative strong relation will indicate that when BTC is rising MWAT price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over RED MegaWatt. If we take all the factors affecting the price of MWAT as 100%, then the share of BTC price among these factors will be 39.69%. The other part which is 60.31% covers all the other factors, such as news, events or politics.