Searching online, i found out that non-stationary cannot be analyzed with traditional econometric techniques as in case of non-stationarity some basic model assupmtions are not met and correct reasoning on relationships between non-stationary time-series is impossible.
Is there anyone who can enlighten me what are the basic model assumptions and the correct reasoning on relationships?
Furthermore, how does techniques such as detrending, detrending, seasonal adjustment, and transformation test helps to make those non-stationary data into useful stationary data for analysis?
(My thinking is that for example if the non-stationary stock data are gibberish, no amount of effort would be able to make them useful for predicting the stock market.)
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