Does XG Sports depend on Bitcoin? Based on the correlation analysis, BTC and XG have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the last 100-days' price movements of both assets.
This coefficient may adjust 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 shows that the prices of the assets are moving in the opposite trend while the positive coefficient points that the prices are going in the identical trend. For instance, if Bitcoin and XG Sports connection is positively strong, it means that when BTC is rising XG will rise as well. The negative strong relation will indicate that when BTC is growing XG price will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over XG Sports. If we take all the factors affecting the price of XG 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 factors, such as news, events or crypto related laws.