XiangZhangSC / quant-with-r

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How to determine if two price series are cointegrated? #4

Open XiangZhangSC opened 1 year ago

XiangZhangSC commented 1 year ago

In the book "quantitative trading with R", the author said "the check for cointegration relies on the statistical analysis of resulting residuals".

Does it mean qq-plot? I suppose the residuals should be normally distributed.

A definition of cotegration can be found in the notes of the above book.