The following table shows closing price of 5 stocks for years. Observations on multiple phenomena over multiple time periods are called panel data. We can combine time-series and cross-sectional data to form two-dimensional data sets. The following tables illustrate the difference.Īs you can see, both time-series data and cross-sectioned data are one-dimensional. For example, closing price of 100 stocks at the end of a year. Note that time-series data contains observations on a single phenomenon (prices of one stock) over multiple periods of time.Ĭross-sectional data on the other hand, contains observations on multiple phenomena observed at a single point of time. The time unit of observation could be anything such as day, week, month, or year. For example, when we take daily closing prices of a stock for 1 year, it is time-series data. Time-series data refers to observations made over a period of time at regular intervals. In investment analysis, we observe two types of data, namely, time-series data and cross-sectional data.
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