Does RoyalCoin depend on Bitcoin? According to the correlation analysis, BTC and ROYAL have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the last 100-days' price dynamics 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 means that the prices of the cryptocurrencies are moving in the contrary trend while the positive coefficient means that the prices are going in the identical trend. For example, if Bitcoin and RoyalCoin connection is positively strong, it means that when BTC is growing ROYAL will rise as well. The negative strong relation will show that when BTC is rising ROYAL price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over RoyalCoin. If we take all the circumstances affecting the price of ROYAL 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 things, such as news, events or regulations.