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reformat the question to increase readability; improve some expressions.
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edit approved Mar 2, 2020 at 9:36
Chris Tang
edit approved Mar 2, 2020 at 9:36
Chris Tang
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Testing Finding causal(?) relationship between two sets of time series data

I want to see if a change in the volume of Google searches of a company affects that company's stock price. I have time series data from Google Trends and daily close price of the stocks in question, and I was thinking of doing the following:

Take daily percentage changes for both data sets, find correlation between Google search volume (x) and stock price (y), regress y on x. 

I understand that correlation does not imply causality, but am I on the right track or should I be taking a different approach? I have some basic statistics knowledge but a relative beginner when it comes to time series data. Thank you!

Testing causal(?) relationship between two sets of time series data

I want to see if a change in the volume of Google searches of a company affects that company's stock price. I have time series data from Google Trends and daily close price of the stocks in question, and I was thinking of doing the following:

Take daily percentage changes for both data sets, find correlation between Google search volume (x) and stock price (y), regress y on x. I understand that correlation does not imply causality, but am I on the right track or should I be taking a different approach? I have some basic statistics knowledge but a relative beginner when it comes to time series data. Thank you!

Finding causal relationship between two sets of time series data

I want to see if a change in the volume of Google searches of a company affects that company's stock price. I have time series data from Google Trends and daily close price of the stocks in question, and I was thinking of doing the following:

Take daily percentage changes for both data sets, find correlation between Google search volume (x) and stock price (y), regress y on x. 

I understand that correlation does not imply causality, but am I on the right track or should I be taking a different approach? I have some basic statistics knowledge but a relative beginner when it comes to time series data. Thank you!

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Richard Hardy
Richard Hardy
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Testing causal(?) relationship between two sets of time series data

I want to see if a change in the volume of Google searches of a company affects that company's stock price. I have time series data from Google Trends and daily close price of the stocks in question, and I was thinking of doing the following:

Take daily percentage changes for both data sets, find correlation between Google search volume (x) and stock price (y), regress y on x. I understand that correlation does not imply causality, but am I on the right track or should I be taking a different approach? I have some basic statistics knowledge but a relative beginner when it comes to time series data. Thank you!