Detrend

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Detrend

To remove the general drift, tendency, or bent of a set of statistical data as related to time. Often accomplished by regressing a variable or a time index and perhaps the square of the time index and capturing the residuals. A stochastic detrend would be to subtract a moving-average (say for five years) from the value of the variable.

Detrend

The removal of a trend from the consideration of several variables. A detrend may be necessary to discover a company's true financial health. For example, one may detrend increased sales around Christmas time to see a more accurate account of a company's sales in a given year.
References in periodicals archive ?
It is important to note that in this exercise the federal funds rate is modeled in levels (that is, percent), although in principle it would be conceptually desirable to model it as a nominal interest rate in terms of a gap, using the same underlying slow-moving trend diat we use to de-trend inflation.
AIR developed the Agricultural Weather Index (AWI) to de-trend the time series of historical yields to create more accurate yield distributions.
Phase Average, Hodrick-Prescott and Linear trends, these do not reflect the range of methods used in practice by macroeconomists to de-trend time-series data.