Does Umbrella depend on Bitcoin? According to the correlation analysis, BTC and ULTC have a strong positive relationship. The correlation coefficient of their prices is 0.45, which was computed based on the last 100-days' price movements 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 assets are moving in the opposite trend while the positive coefficient means that the prices are going in the same trend. For instance, if Bitcoin and Umbrella connection is positively strong, it means that when BTC is growing ULTC will rise as well. The negative strong relation will show that when BTC is growing ULTC price will be in contrary lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Umbrella. If we take all the aspects affecting the price of ULTC as 100%, then the share of BTC price among these factors will be 20.25%. The other part which is 79.75% covers all the other aspects, such as news, events or politics.