DEFINITION of 'Rescaled Range Analysis'
A statistical analysis of a timeseries of financial data that attempts to find patterns that might repeat in the future. While rescaledrange analysis techniques have proved useful in other mathematical endeavors, the evidence for its use in analyzing financial data remains somewhat unproven. There are two main variables used in this technique – the range of the data (as measured by the highest and lowest values in the time period), and the standard deviation of the data. A derivative of this mathematical result is known as a Hurst exponent; if a trend actually exists in the data, this Hurst exponent can extrapolate a future value or average for the data point.
INVESTOPEDIA EXPLAINS 'Rescaled Range Analysis'
The desire to predict patterns in financial data (especially asset prices) is as old as the history of data itself. What makes the search so appealing is that stock market history does show cyclicality, albeit in a nonperiodic way. Business cycle lengths seem to keep showing up in periods of four to five years, although nobody can explain why.

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The fluctuations in economic activity that an economy experiences ... 
Residual Standard Deviation
A statistical term used to describe the standard deviation of ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
Cyclical Stock
An equity security whose price is affected by ups and downs in ... 
Regression
A statistical measure that attempts to determine the strength ... 
Homoskedastic
A statistics term indicating that the variance of the errors ...

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