Does SydPakCoin depend on Bitcoin? According to the correlation analysis, BTC and SDP have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was estimated based on the previous 100-days' price fluctuations of both currencies.
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 points that the prices of the cryptocurrencies are going in the reversed direction while the positive coefficient indicates that the prices are going in the identical direction. For example, if Bitcoin and SydPakCoin connection is positively strong, it means that when BTC is rising SDP will rise as well. The negative strong relation will tell that when BTC is growing SDP price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over SydPakCoin. If we take all the things affecting the price of SDP 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 things, such as news, events or crypto related laws.