Does XDE II depend on Bitcoin? According to the correlation analysis, BTC and XDE2 have a very strong positive relationship. The correlation coefficient of their prices is 0.90, which was calculated based on the previous 100-days' price fluctuations of both assets.
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 currencies are going in the reversed trend while the positive coefficient shows that the prices are going in the identical trend. For instance, if Bitcoin and XDE II connection is positively strong, it means that when BTC is growing XDE2 will grow as well. The negative strong relation will show that when BTC is rising XDE2 value will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over XDE II. If we take all the things affecting the price of XDE2 as 100%, then the share of BTC price among these factors will be 81.00%. The other part which is 19.00% covers all the other factors, such as media, technological releases or crypto related laws.