Abstract
Unrelated time series data can show spurious correlations by virtue of a shared drift in the long term trend. The spuriousness of such correlations is demonstrated with examples. The SP500 stock market index, GDP at current prices for the USA, and the number of homicides in England and Wales in the sample period 1968 to 2002 are used for this demonstration. Detrended analysis shows the expected result that at an annual time scale the GDP and SP500 series are related and that neither of these time series is related to the homicide series. Correlations between the source data and those between cumulative values show spurious correlations of the two financial time series with the homicide series. These results have implications for empirical evidence that attributes changes in temperature and carbon dioxide levels in the surface-atmosphere system to fossil fuel emissions.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
