Hi Guys,<div><br></div><div>Does any one have the experience on <span class="Apple-style-span" style="font-family: Arial; ">how to normalise(or we say standardise) the periodic data, for example, the attached data. </span></div>
<div><br></div><div>I am not going to use it for forecasting, rather than treat it as an input variable for another model with the other time series data. </div><div>e.g. model the volatility of return series, r(t), one can add trade volume as an exogenous variable in the conditional variance equation. IF the volume data has the characteristic of periodicity, should it be normalised?</div>
<div><br></div><div>I know the moving average is a method to detect the seasonality or periodic, however, it will reduce the data observations, e.g. we have one series {a1, a2, ..... , a99}, after taking the moving average (3 point) it could be only one third of the {a1', a2',...,a33'} series.</div>
<div><br></div><div>Appreciate for any comment.</div><div><br></div><div>Cheers</div><div>Mam</div>