One Method of Diagnosing Autocorrelation Is to Plot the Residuals

question 166

True/False

One method of diagnosing autocorrelation is to plot the residuals against the time periods to see whether some pattern emerges.

---

Definitions:

Short Position

The futures trader committing to deliver the underlying asset.

S&P 500 Futures

Financial contracts that speculate on the future value of the S&P 500 index, allowing investors to predict and hedge against market movements.

Position

An investment holding or the amount of a particular security, commodity, or currency that an investor owns or has contracted to buy or sell.

Stock Index Futures

Are futures contracts where the underlying is a stock index, and they are used by investors to speculate on the future direction of the index's price or to hedge against potential index movements.