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 ...
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 ...
In Part 3 of our series on modern portfolio theory, we discuss how R-squared can determine the usefulness of other MPT statistics. In a recent article, we went over how beta and other modern portfolio ...
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 ...
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 ...
Mary Hall is a editor for Investopedia's Advisor Insights, in addition to being the editor of several books and doctoral papers. Mary received her bachelor's in English from Kent State University with ...
R-squared reflects the percentage of an investment's movements that can be explained by movements in its benchmark index. A higher R-squared indicates a more useful beta figure, while a lower ...