## Code for time series analysis in Stata

Let's understand the Stata code to run the autocorrelation test first. To find autocorrelation, we draw correlograms. The command to draw correlograms is `corrgram`

, for example, take a look at the following:

**corrgram fridge_sales, lags(12)**

You will get the following output when you run this command:

To explore the different relationships between two given time series, you can leverage the `xcorr`

command.

The following graph depicts the existing correlation between the `fridge_sales`

quarterly growth rate and volume. When you use the `xcorr`

command, you need to type all the independent variables first, followed by the dependent variable:

**xcorr fridge_sales volume, lags(10) xlabel(-10(1)10,grid)**

At *lag 0*, you can see that there is a nicely pointed out negative correlation between *fridge_sales* and the volume of the given model. This implies that the drop in volume causes a continuous and immediate increase in *fridge_sales*, as shown in the following table:

Now...