If you are an investor, knowing statistics will likely give you an advantage. If you are a cryptocurrency investor, knowing statistics gives you a definite advantage. In this article, we will talk about the cryptocurrencies that Shiba Inu (SHIB), a popular meme coin, and Bitcoin are in a correlation relationship.
In this image, you can see the correlation between the leading crypto Bitcoin and other cryptocurrencies. So what is correlation? Let’s explain briefly. Correlation is a statistical term that measures the relationship between two variables. If the value of one variable increases or decreases along with the value of the other variable, there is a correlation between these two variables. Correlation is used to determine how strong the relationship between two variables is. The correlation coefficient usually takes a value between -1 and 1. If the correlation coefficient is positive, the relationship between the two variables is positive, that is, as one variable increases, the other increases. If the correlation coefficient is negative, the relationship between the two variables is negative, that is, as one variable increases, the other decreases. If the correlation coefficient converges to zero, the relationship between the two variables is weak or absent. Here, Bitcoin has a strong and positive correlation with the leading altcoin Ethereum at the level of 0.97. This means that Bitcoin price and Ethereum price are moving in the same direction. This is not a surprising result. But what is interesting is that Bitcoin has a negative and weak relationship with Shiba Inu and Dogecoin. Now let’s take a closer look at the Shiba Inu.
In this image, we see the correlation coefficients of Shiba Inu (SHIB) and other assets. The detail that stands out here and forms the main subject of the news is Polygon (MATIC). Unexpectedly, there has been a strong and positive correlation between Shiba Inu and Matic in the last 60 days. This means that the price of Shiba Inu (SHIB) and the price of MATIC moved parallel to each other. In other words, while MATIC has increased in the last two months, Shiba Inu has also increased. It also has a strong correlation with Avax and Uniswap. It remains to be seen whether these correlations will continue in the upcoming periods.
As we mentioned at the beginning of the news, statistics is an indispensable science for investors. It generally benefits the investor with a simple narrative.
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