Using standard deviation values as independent variables

[monsmatglad]

Hey. I am planning on doing some research, where I predict a change based on different types of risk.
The question is simple. Can I use values of standard deviation as independent variables in a linear regression analysis (OLS)? The standard deviation values over time will be calculated in advance from time series, and then used as independent variables in the regression analysis.

Mons

 

[BWV]

You have to be careful of overlapping time periods, ie the rh var is sd from period t:t+n and lh variable is data at time t, with each increment of t having n overlap - this will lead to autocorrelation and spurious t-values unless you use a robust method like GMM to correct for these