autocorrelation function (acf)

How to Calculate ACF?

The autocorrelation function is calculated using the following formula:
\[ \text{ACF}(k) = \frac{\sum_{t=1}^{N-k} (X_t - \bar{X})(X_{t+k} - \bar{X})}{\sum_{t=1}^N (X_t - \bar{X})^2} \]
Where:
- \( k \) is the lag.
- \( X_t \) is the data point at time \( t \).
- \( \bar{X} \) is the mean of the data points.
- \( N \) is the total number of data points.

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