A lagged correlation is used for when a time delay is suspected in the
connection between the two variables. The sign of the time delay can
point to he causality of the relationship. A correlation between two
can mean four things:
- X affects Y,
- Y affects X,
- X and Y are affcted by a third variable Z,
- the correlation was a coincidence.
A lagged correlation can sometimes eliminate the first or second
The lag can ether be a single time delay, or a range. It is not
allowed to vary both the starting month and the lag. Please contact
me if you need a lag that is not in the long list.