Does SmartCoin depend on Bitcoin? Based on the correlation analysis, BTC and SMC have a weak positive relationship. The correlation coefficient of their values is 0.28, which was estimated based on the last 100-days' price dynamics of both coins.
This coefficient may adjust 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 tells that the prices of the cryptocurrencies are moving in the contrary direction while the positive coefficient tells that the prices are moving in the identical trend. For example, if Bitcoin and SmartCoin connection is positively strong, it means that when BTC is rising SMC will rise as well. The negative strong relation will indicate that when BTC is growing SMC value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over SmartCoin. If we take all the factors affecting the price of SMC as 100%, then the share of BTC price among these factors will be 7.84%. The other part which is 92.16% covers all the other things, such as news, technological releases or regulations.