I am trying to understand better how to read the autocorrelation plot here for a timeseries data.
I ran the following code and got the output as a chart show below.
from pandas.plotting import autocorrelation_plot autocorrelation_plot(df("y"))
Here y is the dependent variable
Should I derive the following conclusions
- There are no significant autocorrelations.
- The data is random.
- Most of the correlations (except for 2 lags) fall within 95% confidence limits
- This timeseries is not worth forecasting
Please help me if my understanding is right ?