14.2 Seasonality

Seasonality captures effects that occur with specific frequency. It can be driven by many factors.

  • Short-term regular wave-like patterns

  • Observed within 1 year

  • Often monthly or quarterly

  • Naturally occurring events, such as weather fluctuations caused by time of year

  • Business or administrative procedures, such as start and end of a school year

  • Social or cultural behavior, such as holidays or religious observances

  • Fluctuations due to calendar events, such as the number of Mondays per month for trading or holidays that shift from year to year (Easter, Chinese New Year)