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 ?
First, he sets up the usual decomposition of output growth into its supply-side components, detrends each piece of the decomposition, and estimates a dynamic error correction model for each.
For this reason it is important to detrend time series with a methodology that treats cyclical and low-frequency variations jointly and provides some evidence on the uncertainty of both trend and cyclical components.