BITCOIN Verses ETHEREUM Correlation Test In SPSS

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In the real world, some assets which belong to different blockchain actually have some positive correlation. This article will examine the price of BITCOIN and ETHEREUM relationship analysis in the month of October, 2022.

It shall be considered under the following subheading;

Result of Correlation Test between BITCOIN and ETHEREUM

The result of analysis between BITCOIN and ETHEREUM in the month of October, 2022 is been presented on the table below.

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It can be seen with a coefficient of 0.898, we shall practically determine whether or not there is a relationship between both assets.

Correlation test has its null hypothesis which states that there is no form of relationship between bi-variates. A null hypothesis is a belief as regards an un-analyzed data. I collected the price of BTC and ETH without analysis, there is a belief that there is no relationship between both crypto prices.

The null hypothesis is been substituted for alternate hypothesis with the significance value lesser than 0.05. if the calculated significance value is less than 0.05, we reject the hypothesis which means there is a relationship between both variables.

An analysis of correlation test was carried out to determine the nature of relationship. With a coefficient of 0.898 indicates there is a positive correlation. It also has a significance value of 0.00 which is < 0.05. this is a clear indication of positive relationship.

A positive correlation indicates that as the price of BITCOIN is in a bull, that of ETHEREUM will be bullish and vice versa but from the analysis, the rate of relationship is high meaning that if BITCOIN climbs 1% ETHEREUM may likely climb 0.7% - 0.8%.

Scatter dot Diagram of BITCOIN and ETHEREUM

The image below represents a scatter dot diagram of BTC and ETH.

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It shows that for every value for BTC price can result a value for ETH price. This also shows the relationship is strong having considered the diagonal line.

Maximum and Minimum Price of BITCOIN and ETHEREUM

The maximum and minimum price of BITCOIN and ETHEREUM in the month of October, 2022 is been displayed in the table below.

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Conclusion

This analysis has been able to present the nature of relationship between the price of BITCOIN and that of ETHEREUM in the month of October, 2022. It can be seen there is a positive and strong relationship between both assets. The article also presents maximum and minimum prices of both assets.

Other images are:

Data view
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Variable view
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4 comments
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(Edited)

Why is there 91 pairs of prices when there are only 31 days in October?

!PIZZA

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Good question, if you check the data view I entered three prices for each day to give more description. the price of an asset could be volatile and Entry of three statistics will help define the deviations in price. Thanks for reading

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