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R Square

In statistics, the percentage of a portfolio's performance explainable by the performance of a benchmark index. The R square is measured on a scale of 0 to 100, with a measurement of 100 indicating that the portfolio's performance is entirely determined by the benchmark index, perhaps by containing securities only from that index. A low R square indicates that there is no significant relationship between the portfolio and the index. An R Square is also called the coefficient of determination. See also: Beta.


R-squared is a statistical measurement that determines the proportion of a security's return, or the return on a specific portfolio of securities, that can be explained by variations in the stock market, as measured by a benchmark index.

For example, an r-squared of 0.08 shows that 80% of a security's return is the result of changes in the market -- specifically that 80% of its gains are due to market gains and 80% of its losses are due to market losses. The other 20% are the result of factors particular to the security itself.

References in periodicals archive ?
It comprises a customisable set of more than 60 equity derived data fields such as Average Daily Volume, Simple Moving Averages, Alpha, Beta, and R-squared.
In December 2014 the first employees finished their training at R-Squared Puckett Inc.
The second chapter, which deals with the issue of data mining, discusses the experimenter's control over the tools of model selection criteria, namely t-ratios, R-squared, adjusted R-squared, and other goodness of fit criteria.
092) ** Lagged GDP per capita Lagged agriculture share Lagged manufacturing Share Lagged mining share Lagged export intensity Lagged import intensity AR(1) Country-fixed effect No Yes Observations 792 792 Adjusted R-squared 0.
An R-squared score of 98 percent would suggest significant overlap with the benchmark, while a lower number would reflect more independence.
An R-squared value is the square of the correlation coefficient, which indicates the percentage of the movements in the independent variable that can be explained by the dependent variable.
0036) *** Observations 4,777,455 4,777,455 R-squared 0.
We are extremely pleased to integrate HealthCare Appraisers' FMV calculator into RADS," said Michael Bell, president and CEO of R-Squared.
75*** R-squared 13% 11% 18% (Post2-Pre1) Mean W HF 2.
The relationship between Current Account_GDP and the ratio is statistically significant with R-squared = 0.
Table 1 showed that our benchmark expectations measure is not particularly good for forecasting beyond one year, as measured by the R-squared statistic.