VAR (Vector Autoregression)

Vector Autoregression (VAR) is a statistical model used to analyze and forecast the relationships between multiple time series variables simultaneously. It considers that each variable can be influenced not only by its own past values but also by the past values of other variables in the system. This interconnected approach helps uncover how things like economic indicators or market factors evolve together over time, enabling better predictions and understanding of the dynamic interactions within complex systems.