Does The Hempcoin depend on Bitcoin? Based on the correlation analysis, BTC and THC have a very strong positive relationship. The correlation coefficient of their values is 0.84, which was estimated based on the previous 100-days' price movements of both assets.
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 points that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient indicates that the prices are going in the same direction. For instance, if Bitcoin and The Hempcoin connection is positively strong, it means that when BTC is growing THC will grow as well. The negative strong relation will point that when BTC is rising THC price will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over The Hempcoin. If we take all the circumstances affecting the price of THC as 100%, then the share of BTC price among these factors will be 70.56%. The other part which is 29.44% covers all the other factors, such as news, events or politics.