Does Soarcoin depend on Bitcoin? According to the correlation analysis, BTC and SOAR have a strong positive relationship. The correlation coefficient of their prices is 0.65, which was computed based on the previous 100-days' price movements of both coins.
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 indicates that the prices of the assets are going in the opposite direction while the positive coefficient points that the prices are going in the same trend. For instance, if Bitcoin and Soarcoin connection is positively strong, it means that when BTC is growing SOAR will rise as well. The negative strong relation will show that when BTC is growing SOAR value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Soarcoin. If we take all the factors affecting the price of SOAR as 100%, then the share of BTC price among these factors will be 42.25%. The other part which is 57.75% covers all the other factors, such as news, technological releases or regulations.