Does TargetCoin depend on Bitcoin? According to the correlation analysis, BTC and TGT have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was calculated based on the previous 100-days' price dynamics of both cryptocurrencies.
This coefficient may vary 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 going in the contrary trend while the positive coefficient indicates that the prices are going in the same direction. For example, if Bitcoin and TargetCoin connection is positively strong, it means that when BTC is rising TGT will grow as well. The negative strong relation will show that when BTC is growing TGT value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over TargetCoin. If we take all the factors affecting the price of TGT 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, events or politics.