Almost every day you can find in media commentary that XYZ is causing stocks to fall (or rise). Such definitive statements are common—but what’s almost always missing is statistical proof. And if you ...

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 ...

Look up a stock symbol at most sites and you’ll get a number that represents the stock’s beta. This is a statistic that measures the variance of a stock against the overall market. In theory, ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, ...

R-squared – or the coefficient of determination – is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.