A lag plot is a simplistic and non-statistical approach for analyzing the relationship between a series and its lags. As the name indicates, this method is based on data visualization tools, with the use of two-dimensional scatter plots for visualizing the series (typically on the y-axis) against the k lag of the series. Hence, each pair of points represents a combination of the series observations and their corresponding lagged values. As more points on the lag plot are closer to the 45 degree line, the higher the correlation will be between the series and the corresponding lag. The TSstudio package provides a customized function, ts_lags, for creating multiple lag plots. Let's use the function to plot the USgas series against its lags:
ts_lags(USgas)
We will get the following plot:
Looking at the lag plots of the USgas series, you can see that, moving along...
