Time-Period Basis

Posted in Finance, Accounting and Economics Terms, Total Reads: 913

Definition: Time-Period Basis

In most of the data analysis we use time series data, so time-period basis is an implication from the use of time series data, in which the final outcome or the conclusion will change based on the starting and ending dates of the statistical sample data.

So as per this concept for any research in which we may use any statistical data we should ensure that we never use smaller size time series, as the smaller size time series would ensure that chances events would also end up in our conclusion, but with bigger size time series this would not be possible. Suppose we have to test various investment strategies, then time time-series basis can be a significant indicator of the success of the investment strategy.

So for analyzing a strategy suppose we use only one business cycle, it can show it to be more profitable. This is because of the Time-Period Basis phenomenon. But if we use a time-series which is longer in length this phenomenon would be eliminated.


Hence, this concludes the definition of Time-Period Basis along with its overview.

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