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Detrended Cross-Correlation Analysis: A New Method for Analyzing Two Nonstationary Time Series

Boris PodobnikDepartment of Physics, University of Rijeka, Rijeka, Croatia . [email protected]H. Eugene StanleyDepartment of Physics, Faculty of Civil Engineering, University of Rijeka, Rijeka, Croatia and Zagreb School of Economics and Management, Zagreb, Croatia
2008en
ABI

Abstract

Here we propose a new method, detrended cross-correlation analysis, which is a generalization of detrended fluctuation analysis and is based on detrended covariance. This method is designed to investigate power-law cross correlations between different simultaneously recorded time series in the presence of nonstationarity. We illustrate the method by selected examples from physics, physiology, and finance.

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