Does SterlingCoin depend on Bitcoin? According to the correlation analysis, BTC and SLG 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 fluctuations of both cryptocurrencies.
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 cryptocurrencies are moving in the reversed trend while the positive coefficient points that the prices are moving in the same trend. For instance, if Bitcoin and SterlingCoin connection is positively strong, it means that when BTC is growing SLG will grow as well. The negative strong relation will indicate that when BTC is rising SLG value will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over SterlingCoin. If we take all the aspects affecting the price of SLG 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 factors, such as media, technological releases or politics.