# 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 ?
Recall that our VAR does not use detrended real data, nor does it include a trend as a regressor.
One puzzling aspect of the results with detrended variables is that the interest rate equation no longer registers any significant regime break.
Baseline VAR specification with y, c, i, y - h detrended [pi] 0.002 0.072 0.040 0.004 0.567 0.741 1975:Q2 1975:Q2 1981:Q4 1976:Q1 1978:Q4 1988:Q4 y 0.110 0.036 0.121 0.224 0.296 0.867 1972:Q3 1984:Q1 1981:Q2 1987:Q2 1981:Q4 1977:Q4 c 0.738 0.063 0.065 0.095 0.105 0.001 1970:Q1 1981:Q3 1980:Q2 1980:Q2 1975:Q2 1980:Q2 i 0.812 0.269 0.239 0.014 0.049 0.662 1968:Q4 1987:Q1 1985:Q1 1976:Q4 1980:Q1 1990:Q2 y - h 0.325 0.147 0.078 0.187 0.476 0.665 1972:Q3 1984:Q1 1984:Q1 1976:Q4 1981:Q4 1970:Q1 r 0.425 0.813 0.714 0.801 0.865 0.460 1977:Q4 1980:Q1 1986:Q1 1990:Q3 1998:Q3 1976:Q3 NOTE: Values reported are the p-values for the Andrews (1993) sup-Wald test, computed using the procedure of Diebold and Chen (1996).
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