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Correlation Analysis Of Leo Token and Tron (April 28 – May 28, 2022)

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Analysis of @Leofinance token will support individual investment decision in the plan of tokens to invest in alongside Leo. Like a pair wise investment. I have been able to analyze the relationship between Leo token and major tokens such as bitcoin, ethereum and other alt coins such as doge, solana, xrp and dot.

This article will analyze the relationship between the Leo token and that of tron.

Leo token is a token of leofinance. A crypto platform which earns you crypto for creating essential contents. To learn more about leofinace, visit the website below. https://leofinance.io.

Photo Source - coinmarketcap.com

Tron is a decentralized open source block chain with smart function. It has its native token called Tronix also referred to as trx coin. It is also an altcoin. Visit the link to know more about tron. https://tron.network.

Photo Source - fxleaders.com

You can track the price of Leo and Tron on coin gecko as well.

In the course of this article I shall tend to define what correlation analysis is about; identify directionality and correlation coefficient, theories of the analysis, data extraction and analysis of the price of Leo and Tron token from coin gecko and lastly interpreting the result.

What is correlation analysis? Correlation analysis is a test of relationship that tends to compare variables in a process, it will measure the strength of relationship by indicating the coefficient of correlation between variables.

Identification of directionality of correlation It is essential to understand the following points when analyzing the directionality of correlation.

Positive correlation Positive correlation indicates that the higher the variable X, the higher the variable Y. Meaning that as the price of of leo token rises, the price of tron rises as well. This indicates that directionality of correlation tends towards a positive one and the coefficient of correlation is positive.

Negative correlation Negative correlation indicates that the higher the variable X, the lower the variable Y. Meaning that as the price of leo increases, the price of tron decreases. Hence the direction of correlation coefficient moves towards a negative one.

Zero correlation Zero correlation indicates that there is no relationship between the variables in consideration. Meaning that we cannot say the price of leo token relates with that of tron. Hence the direction of relationship tends towards zero.

The coefficient for finding relationship is measured by a coefficient called correlation coefficient. The coefficient of correlation moves towards any of the afore mentioned axis.

It could be negative one indicating that the higher the price of leo, the lower the price of tron.

It could be positive one indicating that the higher the price of leo, the higher the price of tron.

It could be zero indicating that no relationship at all between both prices.

Whichever is the one, we shall determine which is it when the result of the test is carried out.

Taken With Desktop Computer

We shall proceed with data entry into SPSS software. SPSS is a software that can be used for analysis of crypto prices. Here are the variable views and data views of both entries.

Taken With Desktop Computer

The variable leo and tron are the second and sixth variables.

We have to determine the directionality of our data using scatter plot diagram.

Taken With Desktop Computer

From the scatter plot diagram the relationship tends to be negative but let’s determine how strong or weak it is by carrying out the correlation test.

Taken With Desktop Computer

From our analysis of correlation,

Taken With Desktop Computer

There is a negative relationship between the price of leo token and that of tron, meaning that as that of leo increases there is a medium chance for tron to reduce = -0.5.

Conclusion Investing in Tron token alongside with Leo token may be a big risk because there is a relationship between both tokens but it appears to be negative having considered 120 samples of data.

At this point in time, it is not advisable to invest in tron along side with leo hoping that when leo rises, tron will rise aswell. If you want to invest in tron, invest separately from leo hoping that whenever it rises you make your profit but don’t feel as leo will rise tron will rise aswell onlike other related tokens.