Determining the order of the ARMA model is done through the ACF and PACF curves. These curves helps us in knowing how many AR & MA terms will have to be used in building the ARMA model. This is quite helpful when using Box-Jenkins method of building an ARMA or ARIMA model.
ACF - Auto Correlation Function
PACF - Partial Auto Correlation Function
Time series models are used for forecasting stock price, stock returns and many other univariate data that has been measured for consecutive time periods
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