This view carries out the BDS test for independence, as described in Brock, Dechert, Scheinkman and LeBaron (1996).

The BDS test is a portmanteau test for time based dependence in a series. It can be used for testing against a variety of possible deviations from independence, including linear dependence, non-linear dependence, or chaos. The test can be applied to a series of estimated residuals to check whether the residuals are independent and identically distributed (iid). For example, the residuals from an ARMA model can be tested to see if there is any non-linear dependence in the series after the linear ARMA model has been fitted.

See “BDS Independence Test” for a description of the BDS test.