Cointegration is a statistical concept that describes the relationship between two or more time series variables that move together in the long run, even if they may deviate from each other in the short term.
In financial analysis, cointegration is often used to identify pairs or groups of assets that have a long-term relationship, such as a stock and its underlying index, or two different currencies. By understanding the cointegration between assets, investors can make more informed decisions about how to allocate their portfolios and manage risk....
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