Does TerraNovaCoin depend on Bitcoin? Based on the correlation analysis, BTC and TER have a strong positive relationship. The correlation coefficient of their prices is 0.63, which was computed based on the last 100-days' price fluctuations of both coins.
This coefficient may range 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 shows that the prices of the assets are moving in the reversed direction while the positive coefficient shows that the prices are going in the identical direction. For example, if Bitcoin and TerraNovaCoin connection is positively strong, it means that when BTC is growing TER will grow as well. The negative strong relation will show that when BTC is rising TER value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over TerraNovaCoin. If we take all the factors affecting the price of TER as 100%, then the share of BTC price among these factors will be 39.69%. The other part which is 60.31% covers all the other things, such as news, technological releases or politics.