AI engineering glossary · Time series recsys
What is differencing?
Differencing: Replacing each value by its change from the previous value, y_t - y_(t-1), to remove a trend and help make a series stationary. Applying it again gives the second difference. Over-differencing adds unwanted noise.
Differencing: an example
Sales 100, 104, 109, 115 become changes 4, 5, 6 after one difference.
Related terms
More Time series recsys terms
- Direct forecasting
- Diversity
- Drift
- Dynamic time warping
- ETS model
- Exogenous variable
- Exponential smoothing
- Factorisation machine
Where you learn it
Differencing is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.