Italian stocks reveal hidden cointegration, revolutionizing financial time series analysis.
The article explores hidden cointegration in financial time series, which helps understand relationships between stock prices. Traditional methods assume data is stable, but financial data often isn't. Hidden cointegration considers how one stock's behavior affects another's, even when it's not obvious. By analyzing Italian stocks, researchers found hidden cointegration relationships that weren't apparent with standard methods. This approach can reveal important connections in financial markets that may not be visible otherwise.