Comovement can be determined by
A) examining a scatter plot.
B) economic forecasting models.
C) determining whether a series leads or lags.
D) determining the persistence in a series.
E) marking peaks and troughs.

Question

Quizplus · Accepted Answer

Examining a scatter plot can visually show the degree of comovement between two variables. By plotting one variable on the x-axis and the other on the y-axis, the dots on the graph can show whether the two variables move together (positive correlation), move in opposite directions (negative correlation), or have no relationship (no correlation).

Comovement Can Be Determined by