HiIf I am using the Error correction model, I know I must have a set of cointergrated variables.But why they must be conintergrated?Sorry for such a newbie question!Thanks!

<t>Hi allI am getting confused by the variance swap rate in my risk management courseMy lecturer gave us a formula for variance swap rate last week, that is the Raw Return Realized VarianceAnd he gave us the daily closing prices for the three index variances the V1X Index from Germany, the V2X Index...