Correlation of the returns of selected stablecoins with Bitcoin and Ethereum
Correlation of the returns of selected stablecoins with Bitcoin and Ethereum

Summary/Abstract: The phenomenon of cryptocurrencies has become one of the most controversialtopics in the last few years, both among the professional public in economics andfinance and among ordinary people who trust and invest in them. The main goal ofthe work is to find out the correlation between stablecoins that failed and did notmaintain the promised stability around their peg and prominent cryptocurrencieswith a large market capitalization, namely Bitcoin and Ethereum. The task is to find outthe connection of stablecoins to significant cryptocurrencies. With a high correlation,these stablecoins cannot be stable if they are connected to a highly volatile asset. Pricemovement data of selected cryptocurrencies are used with a daily resolution fromfreely available portals. The correlation is calculated based on the primary returnindicator and the Pearson correlation coefficient. The calculations show that the returnsof QCash and NuBits cryptocurrencies are correlated with Bitcoin and Ethereum,and this correlation was not confirmed for the other studied failed stablecoins.

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