Lead–lag effect

The lead-lag effect is a concept used in various fields, including finance, economics, and statistics, to describe the relationship between two or more time series variables where changes in one variable (the "lead") precede changes in another variable (the "lag"). This relationship can be crucial for understanding causal relationships, forecasting, and making predictions. ### Key Points: 1. **Lead Variable**: This is the variable that responds first or influences another variable.