What is differencing in timeseries and why do we do it?
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# What is differencing in timeseries and why do we do it?

This recipe explains what is differencing in timeseries and why do we do it

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## Recipe Objective

Differencing is a method of transforming a time series dataset. It can be used to remove the series dependence on time, so-called temporal dependence. This includes structures like trends and seasonality.

So this recipe is a short example on what is differencing in time series and why do we do it. Let's get started.

## Step 1 - Import the library

import numpy as np import pandas as pd import matplotlib.pyplot as plt

Let's pause and look at these imports. Numpy and pandas are general ones. Here matplotlib.pyplot will help us in plotting.

## Step 2 - Setup the Data

Here, we have used one time series data from github. Also, we have set our index to date.

## Step 3 - Defining Difference function

def difference(dataset, interval=1): diff = list() for i in range(interval, len(dataset)): value = dataset[i] - dataset[i - interval] diff.append(value) return diff

We are just taking difference between each adjacement elements for removal of trends. Each differnence is taken and put in one list which is sent back when call on.

## Step 4 - Visualizing trend

diff = difference(df.value) plt.plot(diff) plt.show()

Here we have simply calling our defined function. Finally, we are trying to understand the trend in dataset.

## Step 5 - Lets look at our dataset now

Once we run the above code snippet, we will see:

Scroll down the ipython file to visualize the output.

Clearly, it can be seen that the trend has been removed from our dataset.

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