Does XXXCoin depend on Bitcoin? Based on the correlation analysis, BTC and XXX have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated 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 indicates that the prices of the cryptocurrencies are moving in the opposite trend while the positive coefficient points that the prices are going in the identical direction. For instance, if Bitcoin and XXXCoin connection is positively strong, it means that when BTC is rising XXX will grow as well. The negative strong relation will show that when BTC is growing XXX value will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over XXXCoin. If we take all the factors affecting the price of XXX 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 things, such as media, events or politics.