Does Umbrella Coin depend on Bitcoin? According to the correlation analysis, BTC and UMC have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was estimated based on the previous 100-days' price dynamics 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 indicates that the prices of the cryptocurrencies are going in the contrary direction while the positive coefficient means that the prices are moving in the same trend. For instance, if Bitcoin and Umbrella Coin connection is positively strong, it means that when BTC is growing UMC will grow as well. The negative strong relation will tell that when BTC is rising UMC value will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Umbrella Coin. If we take all the aspects affecting the price of UMC as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other factors, such as media, events or crypto related laws.