Time Series Analysis in Finance

Time series analysis in finance involves examining historical data points, like stock prices or economic indicators, collected over time to identify patterns and trends. By analyzing this data, analysts can forecast future movements and make informed investment decisions. Techniques such as moving averages and autoregressive models help detect seasonal effects and long-term trends. Ultimately, time series analysis enables financial professionals to better understand market behavior, assess risks, and develop strategies to optimize returns in a dynamic environment.