Stationarity

Stationarity refers to a property of a time series where its statistical characteristics, such as mean and variance, remain constant over time. In simpler terms, if you observe data points over a period—like monthly temperatures or stock prices—stationary data shows regular patterns without trends or seasonal effects. This consistency makes it easier to analyze and predict future behavior. In contrast, non-stationary data can exhibit trends or changes that complicate analysis, making it harder to identify underlying patterns or relationships. Understanding stationarity is crucial in fields like economics, finance, and environmental science when modeling time-dependent data.