What does historical spread analysis typically involve?

Historical spread analysis primarily involves examining variations in data over time to identify trends, patterns, and anomalies. This method focuses on graphing or plotting spreads to visualize how they change across different time periods, which can reveal insights into market behavior, pricing tendencies, or economic conditions. By analyzing these variations, traders and analysts can make more informed decisions regarding their strategies.

The other options, while related to financial analysis, do not specifically capture the essence of historical spread analysis. For instance, computation of future rates deals more with predictive analytics rather than historical data assessment. Comparison of past prices, while analogous, lacks the specific focus on spreads and may not involve the graphical representation that defines spread analysis. Evaluating current market trends instead focuses on present circumstances without the historical context critical to spread analysis.