Detrend

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 ?
This information becomes useful during universal Kriging to detrend the data.
To detrend our data, we first attempted to fit a negative exponential curve to the individual series raw data.
In contrast, failing to detrend a series that contains a trend typically leads to a loss of consistency and an incorrect asymptotic size.
Aforementioned studies often add a linear time trend to an AR(2) to detrend the data.
Thus, in order to avoid problems of spurious regression, we decided to detrend the time series of unemployment rates before using it in the VAR estimations.
So, both polynomials of various orders and linear functions were tested in a detrend procedure.
The essence of his methodology is to detrend the original series with an allowance for a structural break and to conduct tests for unit roots in the detrended series.
En toda la region realizamos trabajos de capacitacion entre nuestros socios y continuaremos haciendolo", senalo Alexis Garberis, director de SMB deTrend Micro Latinoamerica.
Detrend removes the spectral trend based on a second-degree polynomial fit between wavelengths and absorbencies (Barnes et al.
Thus, we detrend the TFP component by 2 percent per year.
According to Heejoon Kang, a failure to detrend when needed enhances causal relationships, whereas detrending when not needed weakens them.
While there is good reason to find some way to detrend the technology shock series used as an input into the real business cycle model, it is also standard practice to HP filter the predicted series generated by the real business cycle model before checking their intercorrelations and comparing them to the HP-filtered actual data.