Using Comparables Forecasting

You can sometimes improve a forecast by basing it on the historical data of other similar items. This technique, called Comparables-based Forecasting, is especially useful in cases where you have a limited amount of data or where the data is very erratic. In both of these cases it can be difficult to discern patterns and trends in items individually while it is much easier to discern patterns and trends if each item is treated as a member of a group of similar items.