Bitcoin and REX Correlation

Does REX depend on Bitcoin? According to the correlation analysis, BTC and REX have a strong positive relationship. The correlation coefficient of their prices is 0.55, which was estimated based on the previous 100-days' price dynamics 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 means that the prices of the cryptocurrencies are going in the contrary trend while the positive coefficient points that the prices are moving in the identical direction. For example, if Bitcoin and REX connection is positively strong, it means that when BTC is rising REX will rise as well. The negative strong relation will tell that when BTC is growing REX price will be in contrary decreasing.

The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over REX. If we take all the circumstances affecting the price of REX as 100%, then the share of BTC price among these factors will be 30.25%. The other part which is 69.75% covers all the other factors, such as media, technological releases or politics.