Cross-Correlation

  

Clouds of data dance in patterns, helping company-runners analyze competitive dynamics in their collective worlds. Finding cross-correlations helps to understand any variables that might be related to one another.

A simple correlation involves looking for similarities in a same time period, but in a cross-correlation, two sets of random variables can be from different time periods. Hence the "cross" in there, i.e. across time.

For example, is there a relationship between zip codes and how much people spend on buying expensive cars? Or perhaps between people who buy tents and also buy hiking boots?

There is most likely no correlation between barrels of corn produced and the number of oranges consumed.

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