Sorry if the title is a bit vague however, i'm not sure exactly how to make my sentence concise. I have two times series: Amount invested into Iraq across time (in months) Price of a stock across time (averaged each month)
There area few things i want to find out however, i'm only at an intro level stats and econometrics in Uni.
Firstly how would i go about correlating these two time series i've read a few posts on here i'd like some clarification on the best approach to finding a correlation between them. so far i believe i have to use cross correlation which i hope to do using minitab. I want to do this to see if there is an over correlation between the two sets of data.
Secondly is there anyway i can find out when the data correlates the most and when it does not i have over 150 data points and i really like to see during which months the correlation grew or was at its strongest. I want to do this so i can analyse why correlation might have decreased and so on (perhaps attributing it to other macro factors).
I hope this makes sense and if you need any more clarification i'll answer straight away. Thanks for any points and i look forward to learning a little more today.