Let's understand the Stata code to run the autocorrelation test first. To find autocorrelation, we draw correlograms. The command to draw correlograms is
corrgram, for example, take a look at the following:
corrgram fridge_sales, lags(12)
You will get the following output when you run this command:
To explore the different relationships between two given time series, you can leverage the
The following graph depicts the existing correlation between the
fridge_sales quarterly growth rate and volume. When you use the
xcorr command, you need to type all the independent variables first, followed by ...