Stationarity and Unit Roots foundational

Why time-series stability matters, why random walks mislead regressions, and what differencing fixes and destroys.

Why time-series stability matters, why random walks mislead regressions, and what differencing fixes and destroys.

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References

Advances in Financial Machine Learning
Marcos Lopez de Prado (2018) — John Wiley & Sons
Selecting appropriate methodological framework for time series data analysis
Min B. Shrestha, Guna R. Bhatta — The Journal of Finance and Data Science
Co-Integration and Error Correction: Representation, Estimation, and Testing
Robert F. Engle, C. W. J. Granger (1987) — Econometrica