The range of possible values for the correlation coefficient is -1.0 to 1.0. In other words, the values cannot exceed 1.0 or be less than -1.0. A correlation of -1.0 indicates a perfect negative correlation, and a correlation of 1.0 indicates a perfect positive correlation. When the value tends towards 0, the correlation decreases, 0 indicating that there is no correlation between the 2 compared assets.
An analysis from Binance Research published earlier this week presented the correlations of different cryptocurrencies, including Bitcoin and other fairly popular cryptocurrencies. According to their research, here are the 3 cryptocurrencies least affected by Bitcoin fluctuations.
ATOM is the cryptocurrency least affected by Bitcoin price fluctuations. The staking token on the Cosmos blockchain has a median annual coefficient of 0.31indicating that it has no linear relationship to the benchmark crypto – Bitcoin.
Cosmos aims to promote communication, scalability and interoperability between different chains. the Cosmos, dubbed “the internet of blockchains,” aims to link multiple blockchains on a single platform. It should not be confused with the abandoned Atomic Coin (ATOM) project.
Chain link (LINK)
chain link is the 2nd least correlated crypto to Bitcoin with a coefficient of 0.32. Chainlink is a decentralized oracle network that plays a key role in bringing blockchain technology to the real world. The objective of this network is to promote the communication of blockchains with data sources outside the blockchain.
Read also Australia Greenlights Crypto Exchange Approval Via Verification Badge
Tezos is an open-source smart contract platform that allows users to develop decentralized applications (DApps) and issue new digital assets. The Tezos platform is powered by the native crypto XTZ, which allows holders to vote on Tezos protocol proposals. It is the 3rd least correlated cryptocurrency to Bitcoin with a coefficient of 0.4.