**GARCH** stands for **G**eneralized **A**uto**r**egressive **C**onditional **H**eteroskedasticity. To translate, **skedasticity** refers to the **volatility** or wiggle of a time series. **Heteroskedastic** means that the wiggle itself tends to wiggle. Conditional means the **wiggle of the wiggle** depends on something else. **Autoregressive** means that the wiggle of the wiggle depends on its own past wiggle. Generalized means that **the wiggle of the wiggle can depend on its own past wiggle in all kinds of wiggledy ways**.

Kent Osband

(is a ninja)

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