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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The basis for de-trending includes: (i) yields have trended up with technological advancement, (ii) trend explains a large portion of the overall variance, de-trending therefore will ensure that the [R.sup.2] only measures the effect of weather variables, and (iii) a log standardization correctly and parsimoniously accounts for relationship between yield and both the mean and variance of the trend variable.
De-trending a time series is a controversial aspect of the business cycle study because it implies transforming data and some scholars believe this is a manipulation of pure data.
All available data were used for the preliminary de-trending of the imbalances indicators.
Admittedly, de-trending the data exacerbates the end-point problem and thus worsens the real-time performance of the model.
(7.) Some may argue that our de-trending method artificially creates a negative relationship between GDP and government spending (GOV) because GDP may have been below the trend and GOV may have been above the trend for most of the GFC period.
Expanded views of some of the longer time series photometry runs are plotted in Figure 2, after de-trending the data and subtracting the mean magnitude.
Topics include a means for comprehensive analysis of the effect of microarray data preprocessing methods on differentially expressed transcript selection, differentiation detection in microarray normalization, spatial de-trending and normalization methods for two-channel DNA and protein microarray data, a survey of cDNA microarray normalization, technical variations in modeling the joint expression of several genes, analysis for certain data normalization, and array-based analysis for the detection of chromosomal aberrations and copy number variations.
The ABP results are implicitly forecasting future values of actual GDP prior to de-trending (using an IMA(2,2) model).
(2) In fact we consider forecasts up to ten years ahead in an attempt to mitigate problems associated with application of de-trending filters at the end of the sample.
in which [a.sub.0], [b.sub.1], and [b.sub.k], k = 2,...,12 are estimated coefficients from de-trending and deseasonalizing the observed total OECD petroleum inventory.
Canova (1998a,b) and Massmann and Mitchell (2002) find business cycle inference to be sensitive to the de-trending method employed.
This latter concept of the cycle involves some form of de-trending, where a number of papers (e.g., Canova, 1998; Osborn, 1995) have shown that there exist substantial pitfalls awaiting the unwary.