Bitcoin and SHIELD Correlation

Does SHIELD depend on Bitcoin? Based on the correlation analysis, BTC and XSH have a very strong positive relationship. The correlation coefficient of their prices is 0.82, which was calculated based on the previous 100-days' price movements of both assets.

This coefficient may range 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 currencies are going in the opposite trend while the positive coefficient means that the prices are moving in the identical direction. For example, if Bitcoin and SHIELD connection is positively strong, it means that when BTC is growing XSH will rise as well. The negative strong relation will tell that when BTC is rising XSH price will be in opposite lowering.

The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over SHIELD. If we take all the aspects affecting the price of XSH as 100%, then the share of BTC price among these factors will be 67.24%. The other part which is 32.76% covers all the other circumstances, such as media, events or regulations.