Hello everyone,
I'm kind of a beginner with the statistics tools, and I don't know how to interpret the results from the crosscorr function from Econometrics toolbox. Basically I have variables x1, and x2, and I typed crosscorr(x1,x2), which gave me a chart. I am trying to understand which variable has a lag or a lead against the other variable.
Now, in the plot, let's say the correlation is highest at lag = 5. How do you interpret this result? Does that mean x1 lags behind x2, or vice versa. In addition, my time series is from newest to oldest, but crosscorr function assumes the most recent date is the last row. How would that make a difference to the results?
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