How to Make a Time Series Stationary in Python

You can make a time series stationary using adjustments and transformations. Adjustments such as removing inflation simplify the historical data making the series more consistent. Transforms like logarithms can stabilize the variance, while differencing transforms stabilize the mean from trend …

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What Is Stationarity? A Visual Guide

Stationarity means that a process’s statistical properties that create a time series are constant over time. This statistical consistency makes distributions predictable enabling forecasting, and is an assumption of many time series forecasting models. What Is Stationarity? In mathematics and …

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Look-Ahead Bias: What It Is & How to Avoid

Look-ahead bias occurs by using information not available or known in the analysis period for a study or simulation, leading to inaccurate results. An often-overlooked point regarding look-ahead bias is that it isn’t just about when a data observation becomes …

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Survivorship Bias Risk

Survivorship bias is the risk of analyzing investment performance using only “surviving” constituents of a selected investment universe instead of incorporating all current and historical constituents over the performance period. Survivorship bias artificially increases long performance and detracts from short-selling …

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