ASSALAM O ALLAIKUM :How we can easily understand co-integration concept :Co-integration in econometric means long run relationship among your variables, means in long run your(suppose you have two variable) both variable will move to gather , suppose we have two variables "A" and "B" and both are co-integrated now if "A “move toward right side "B" also will move right side same if "A" move toward left side B also move toward left side (means one variable will follow other). ok Understand this concept with following picture click on GIF pic below , suppose here old man is Variable "A" and Dog is Variable "B" and both are co-integrated now you will see if "A" goes to right side B" also goes to right side same for left side direction for both of variables (to see gif example click on this link Here). JAAZAK ALLAH




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