Strength Of Correlation Between Leo token and Hive

Sometimes it is good to play with data and read their various interpretations or indication. This article seeks to measure the type of relationship that exist between leo token and that of hive and indicate its strength.

Leo token is a unique token to leo finance platform a platform which is mearnt for interacting with crypto whereby users gets to create contents as regards the leo crypto market. Visit leofinance on https://leofinance.io

Hive is a similar platform to that of leo. It is a unique token for hive.blog where users gets to choose a certain community and create innovative contents and the are capable of also earning from it as well. Visit hive via the link. https://hive.blog

In the course of this post, I shall tend to define what strength of relationship is all about, theories of relationship, data collection from coin gecko, analysis and interpretation of the data.

What is strength of relationship
Strength of relationship is the degree to which variables are related with one another. The variables considered in this article are the prices of leo token and that of hive.

This statistical method for analysis was been introduced by a statistician named Karl Pearson. He proved a coefficient to measure relationship between two or more variables. The coefficient is referred to as coefficient of correlation also denoted by small letter (r).

He also indicated that there are types of correlation which are positive, negative and zero.

The positive correlation indicates that as one variable increases in amount, the other variable will also increase in amount.
We are to likely say if the coefficient of correlation for leo and hive is positive, it means as the price of leo token goes high, the price of hive simultaneously increases.

The negative correlation is a reverse of the positive correlation. It indicates that as the variable of one goes high the lower the other variable. In a real sense as regards the topic we are saying that there is a negative correlation between leo and hive if as the price of leo increase, that of hive decreases.

The zero correlation indicates that there is no relationship at all between variables in consideration. It the strength of relationship between that of the leo token and hive is zero, it means that we cannot say as the price of hive increases that of leo will neither increase nor decrease.
This is an example of a zero correlation.
Now let’s proceed to collection of the data.

We shall be using SPSS for this process. This is the variable view mode which shows the variable for leo token as the 2nd and that of hive as the 8th.

Below is the data presentation of both variables.

To find the direction of relationship between the hive and leo token, let’s consider the scatter plot for it.

We can see the scatter plot that it tends to be a positive correlation.

But let’s determine the strength of correlation using correlation analysis.

We can see that there is a a high correlation coefficient of .09 between the price of leo token and that of hive.

Correlation doesn’t mean as the price of leo is $5.32, the price of hive should be same or higher, No it indicates that if there is a small increase in the price of leo, despite been larger than hive, the price of hive will also experience an increase too.
We drew this conclusion from the data of 136 samples from coingecko.