One of the importance of data to humans is the information attached to it. In this article, I will analyze the type of relationship that exists between bnb and leo.
I shall be considering the following subsections;
A brief about crypto correlation analysis
Analysis of correlation between bnb and leo token
Conclusion
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A brief about crypto correlation analysis
Crypto currency correlation analysis shows the type of relationship that exist between pairs of crypto assets.
In this case the result of the analysis is either of the following classes.
- Positive correlation
- Negative correlation
- Zero correlation
Positive correlation
A positive correlation indicates that as the price of one crypto asset is in a bull condition, it will also be same for the other variable and vice versa but this might not occur at same rate.
Negative correlation
A negative correlation on the other hand indicates that as the price of one asset is in a bull market, the price of the other will be in a bear and vice versa. But this might not occur at same rate too.
Zero correlation
Zero correlation is closer to zero and indicates that there is no form of relationship between the crypto assets in consideration.
The strength of correlation can either be strong or weak.
Considering Karl Pearson, A famous statistician described correlation using a number line system.
-1---------------------0------------------+1
It is strong when it is closer to any of the figure.
Analysis of correlation between bnb and leo token
The result of correlation analysis between bnb and leo cn be seen below.
However the coefficient of correlation is 0.319. This shows a minimum positive correlation between the price of bnb and leo.
This indicates that as the price of bnb increase in price, the price of leo may likely get increased but not at same rate because the correlation is at minimum which is not strong enough.
Take a look at the diagram of scatter dot,
we can see a minimum diagonal line stating as the price of bnb increase that of leo also gets increased minimally. It is strong when the diagonal starts from the intercept point.
Conclusion
The article has presented the analysis of correlation between binance token and that of leofinance. There seem to be a form of weak positive correlation between bnb and leo.
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Box plot of Bnb
Box plotof leofinance
Box plot reveals the span in price of a crypto asset.
Data view mode
Variable view mode
