Does WineCoin depend on Bitcoin? Based on the correlation analysis, BTC and WINE have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the last 100-days' price fluctuations of both currencies.
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 assets are moving in the reversed direction while the positive coefficient indicates that the prices are moving in the identical trend. For example, if Bitcoin and WineCoin connection is positively strong, it means that when BTC is growing WINE will rise as well. The negative strong relation will point that when BTC is growing WINE price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over WineCoin. If we take all the circumstances affecting the price of WINE 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 aspects, such as news, technological releases or regulations.