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Seasonal variance rate

Measures the share of variance in a time series

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Written by Anthony Cabos
Updated over 4 years ago

Definition

The seasonal variance rate represents the share of the variation of a temporal series due to the season. This corresponds to the variance of the compared component to the variance of the time series. It is rebased to 100 to know the proportion of this component over the time series.

Calculation

Seasonal variance rate = variance of the season / (variance of the season + variance of the trend + variance of the residual)

Example

For a market that have sales and the following breakdown:

We thus have a seasonal variance rate of 56%.

Terminology

The seasonal variance rate can be translated into English as "Season Variance Ratio".

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