Cointegration

Overview


Cointegration refers to a set of time series which share a common trend. After removing the common trend, each series becomes stationary.

If the time series exhibits cointegration, it can be used to achieve stationarity without differencing.

  • Cointegrated series - simple definition of two cointegrated time series.
  • Cointegration of Order (d,b) - the broad definition of cointegrated series