R-squared values range from 0 to 1, indicating the fit and explanatory power of a regression model. Values below 0.3 suggest weak explanatory power; above 0.7 indicate strong relationships. In finance ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Amy is an ACA and the CEO and founder of OnPoint ...

How do investors use r-squared data when picking mutual funds? QUESTION: How do investors use r-squared data when picking mutual funds? A couple of the funds I'm considering have r-squared figures in ...

Most investors have probably never heard of the R-Squared Growth Rate. And even fewer know what it means. (Ten years ago, you could count me as one of them.) But, now I do. I want you to know too. So ...

Detecting dependence between two random variables is a fundamental problem. Although the Pearson correlation coefficient is effective for capturing linear dependence, it can be entirely powerless for ...

Your article was successfully shared with the contacts you provided. April 15, 2004 — The R-squared statistic measures how closely a fund follows the market. When put to good use, it can help mutual ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Thomas J Catalano is a CFP and Registered Investment Adviser ...