Does ShowCoin depend on Bitcoin? Based on the correlation analysis, BTC and SHOW have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was calculated based on the last 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 moving in the opposite trend while the positive coefficient indicates that the prices are going in the identical direction. For example, if Bitcoin and ShowCoin connection is positively strong, it means that when BTC is rising SHOW will rise as well. The negative strong relation will indicate that when BTC is rising SHOW value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over ShowCoin. If we take all the things affecting the price of SHOW as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other factors, such as media, events or crypto related laws.