Understanding the components of time series data
Time series data refers to a sequence of observations or measurements that are collected and recorded over time. Unlike non-sequential data, where observations are taken at a single point in time, time series data captures information at multiple points in a sequential order. Each data point in a time series is associated with a specific timestamp, creating a temporal structure that allows trends, patterns, and dependencies to be analyzed over time. Let’s discuss the different components of the time series data, starting with the trend.
Trend
The trend component represents the long-term movement or direction in the data. It reflects the overall pattern that persists over an extended period, indicating whether the values are generally increasing, decreasing, or remaining relatively constant.
Trends have the following characteristics:
- Upward trend: Values systematically increase over time
- Downward trend: Values...
