Analysis For Leo And Polkadot (dot) Tokens (April 25 – May 25, 2022)

Analysis between Leo token and other tokens have been presented in my previous post on hive.blog.

This helps to present Leo token with other alt coins and classify their progress in termsof relationship. Hence it’s a necessary factor for investors.

Today I will be considering Leo token and polkadot also known as the dot token. Leo token is one owned and backup by @Leofinance.

Leofinance is a blockchain based social platform for crypto with its token called Leo. You can track the price of Leo on coin gecko as well.

Image Source- coinmarketcap.com

Polkadot is a blockchain platform for crypto currency. It provides aid inter- transaction between blockchain and their native token is called dot.

Image Source- coinmarketcap.com

This article will analyze if there is a relationship between that of Leo token and that of dot. In the course of this article, I shall cover the following; what is correlation analysis, theories of correlation analysis, null and alternative hypothesis for correlation analysis, data entry of Leo token and Dot token price in SPSS, analysis of correlation between both prices and their interpretation.

What Is Correlation Analysis
Correlation analysis is a test of relationship that measures the strength of relationship between two or more variables.

In this case, the variables we are concerned about are the price of Leo token and that of dot and hence they are also referred to as variables.

Correlation is measured with a coefficient known as coefficient of correlation which either falls into the following category.

Positive correlation
A positive correlation implies that the higher the price one token, the higher the price of the other token and vice versa. This indicates that the coefficient of correlation is positive and moves towards a positive one on the number system.

Negative correlation
A negative correlation implies that the higher the price one token, the lower the price of the other token. This indicates that the coefficient of correlation is negative and moves towards a negative one on the number system.

Zero correlation
A zero correlation implies that the higher the price one token, the higher the price of the other token. This indicates that the coefficient of correlation is positive and moves towards a positive one on the number system.

However relationship of variables might be weak or strong depending on the coefficient.

Hypothesis For Correlation Analysis
Hypothesis is a statement of fact representing group of data. The null hypothesis for correlation test is that there is no relationship between the variables in consideration the alternate is the opposite.

Secondly, the correlation coefficient is determined by considering the following fact.
The coefficient of correlation resides on a line of -1 to 0 to +1. As it tends towards any of the point simply indicates the type of correlation.

The data below shows the price of Leo and Dot token. It was entered using the variable,

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and data view mode of spss.

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We shall be making use of 111 sample prices of leo and dot tokens from coin gecko

First we shall consider the directionality of relationship using scatter plot.

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From the scatterplot diagram the direction of relationship tends to move towards the positive direction but we cannot conclude yet until the analysis is carried out.

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To carryout the analysis of correlation in SPSS, goto analyze menu>>correlate>>bivariate.

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From the result of analyses, it is obvious the coefficient of correlation is 0.9 which tends towards a positive one.

This indicates that with a significance of 0.00 we can reject our null hypothesis that there is no relationship between both tokens.

Conclusively
A correlation test was carried out using spss to find out if there is a relationship between the price of Leo token and that of dot. It can be seen that there is a maximum positive relationship which entails that as the price of Leo token experiences bull, the price of dot token will as well be on the bullside.

If the price of Leo token is on the bearish side, the price of dot token will also be on a bearish level.