multivariate time series analysis

Multivariate time series analysis examines multiple interconnected data points collected over time, such as stock prices of different companies or environmental measurements like temperature and humidity. It helps identify patterns, relationships, and how variables influence each other across different time periods. By modeling these interactions, it enables better forecasting, understanding of system dynamics, and informed decision-making. This approach is essential when variables are interconnected, allowing analysts to capture the complexity of real-world situations more accurately than analyzing each variable separately.