Hello,
I'm very much a Stata and linear regression newbie. I am running a linear regression with Bitcoin price as the dependent variable and using independent variables such as the S&P500, SSE, and FTSE closing prices, the U.S. CPI, the U.S. GDP, U.S exchange rates with CNY and the Euro, the 10yr maturity rate, and google trend data. I want to analyze the effect that these independent variables have on Bitcoin prices if any at all. All data is recorded at the monthly frequency.
I have a few questions regarding the data and how to use it in linear regression:
1) Should I use a time series and why? What effect does it have?
2) Should I use the % change for my data points as opposed to just the prices and going rates? If not, why shouldn't I?
3) What is a lagged variable and what is its purpose?
Any and all help is appreciated. If there are any useful links you know of that would be great as well. Thanks!
I'm very much a Stata and linear regression newbie. I am running a linear regression with Bitcoin price as the dependent variable and using independent variables such as the S&P500, SSE, and FTSE closing prices, the U.S. CPI, the U.S. GDP, U.S exchange rates with CNY and the Euro, the 10yr maturity rate, and google trend data. I want to analyze the effect that these independent variables have on Bitcoin prices if any at all. All data is recorded at the monthly frequency.
I have a few questions regarding the data and how to use it in linear regression:
1) Should I use a time series and why? What effect does it have?
2) Should I use the % change for my data points as opposed to just the prices and going rates? If not, why shouldn't I?
3) What is a lagged variable and what is its purpose?
Any and all help is appreciated. If there are any useful links you know of that would be great as well. Thanks!
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