The study of crypto currencies will guide our decision making process in terms of investment. The recent deep has really called for investors getting a standby statistician or technical analyst for the in depth analysis of crypto currency.

This article will analyze the kind of relationship that exist between Leo token and that of Avax.

In the course of this article, I shall tend to cover up the following points concerning relationship test. They are: what relationship test is all about, theories surrounding correlation test, data of Leo token and Avax collected from coin gecko.

Leo token is a unique token for @leofinance. Leofinance is a social platform where users get paid some leo’s for creating and interacting with the platform sharing their views about leo.

![Screenshot_20220516-010432_3.jpg](https://images.hive.blog/DQmazzrd4v9AcJn9EKhBoMbW9HvA6wUcXVF9Rs4TrdAjefJ/Screenshot_20220516-010432_3.jpg)<center> Photo Source - coinmarketcap.com</center>

Avalanche is an open programmable smart contract platform for decentralized application. It has its token named “avax” you can visit avalanche blockhain visiting the link. https://avax.network.

![Screenshot_20220530-153633_2.jpg](https://images.hive.blog/DQmYfBFkvRqqqHZTi3wnNz8MRo3oZPcrPik1Rv1AM1EukEy/Screenshot_20220530-153633_2.jpg)<center> Photo Source - coinmarketcap.com</center>

This article will find the relationship between Leo token and Avax. In this course of this article, I shall tend to define and explain more about relationship analysis and its theories, collection of data from coin gecko, analysis and interpretation of the data.

What is relationship analysis?
Relationship analysis is an analysis that seeks to measure how close some variables are and it also indicates the strength or degree of closeness between variables using correlation analysis.

The degree of how related variables are can be measured by a coefficient called coefficient of correlation.
The coefficient of correlation may fall into the following groups.

Positive correlation
A positive relationship indicates that there is a high degree of correlation between the variables in consideration. The variables considered in this case are the price of Leo and Avax token. If it’s a positive relationship we can say as the price of Leo token goes high, the price of Avax token goes high as well.

Negative correlation
A negative correlation indicates that there is negative relationship between the variables in consideration. It means that as the price of Leo token goes high, the price of Avax goes low.

Zero correlation
Zero correlation indicates that there is no relationship between both variables in consideration. Meaning that there is no relationship at all between the price of leo token and that of Avax.

We shall determine where the type of relationship falls between the price of Leo token and that of Avax which is the 2nd and 7th variables.

![Screenshot (84).png](https://images.hive.blog/DQmddCbCmaG1whH6AD2a1dvq4mdPLDkbFBcwXZyn1Yp3Hok/Screenshot%20(84).png)<center> Taken With  Desktop Computer </center>

First I shall proceed to data collection of both variables in SPSS. SPSS is application software that aids statistical analysis such as the one I will analyze.

![Screenshot (85).png](https://images.hive.blog/DQmSaLt5Vzr2n6DoWoNEJTc4NmbBWTK5PppTLJ4wth63dBW/Screenshot%20(85).png)<center> Taken With  Desktop Computer </center>

It is very essential to visualize the direction of relationship if it is to the positive or negative side or zero. To carry out this, we have to use the scatter plot to check the direction of relationship.

Scatter plot diagram

![Screenshot (86).png](https://images.hive.blog/DQmYyBTDUJbCymkmQxqjddWTrDW24vyNaiSsaarvGMHcSRG/Screenshot%20(86).png)<center> Taken With  Desktop Computer </center>

From the diagram below there is a positive relationship between the price of leo and that of avax. 

Let’s figure out the strength of relationship between the two tokens by carrying out a correlation test.

![Screenshot (87).png](https://images.hive.blog/DQmNN2mWyv3iU1fhhmC8DTrWPPnVtd5AeJ6iwi8VSejE3vv/Screenshot%20(87).png)<center> Taken With  Desktop Computer </center>

From the test below,

![Screenshot (88).png](https://images.hive.blog/DQmPbEHmyhreXkH4e9icjFj1p2B758sopmpYC2vJtW59cVD/Screenshot%20(88).png)<center> Taken With  Desktop Computer </center>

 we can see that the coefficient of correlation is 0.903 meaning that it is positive and tends towards positive one. 

We can conclude that there is a high amount of relationship between the Leo token and that of Avax having considered 127samples of avax and 133 data samples of leo. We can reject the hypothesis which says there is no relationship between both prices of tokens.