correlation

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Correlation

Statistical measure of the degree to which the movements of two variables (stock/option/convertible prices or returns) are related. See: Correlation coefficient.

correlation

The relationship between two variables during a period of time, especially one that shows a close match between the variables' movements. For example, all utility stocks tend to have a high degree of correlation because their share prices are influenced by the same forces. Conversely, gold stock price movements are not closely correlated with utility stock price movements because the two are influenced by very different factors. The concept of correlation is frequently used in portfolio analysis. See also serial correlation.

Correlation.

In investment terms, correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions.

Correlation is measured on a scale of - 1 to +1. Investments with a correlation of + 0.5 or more tend to rise and fall in value at the same time. Investments with a negative correlation of - 0.5 to - 1 are more likely to gain or lose value in opposing cycles.

correlation

a statistical term that describes the degree of association between two variables. When two variables tend to change together, then they are said to be correlated, and the extent to which they are correlated is measured by means of the CORRELATION COEFFICIENT.

correlation

A former appraisal term, replaced by reconciliation.
References in periodicals archive ?
6) The R-squared value can also be interpreted as the average increase in accuracy obtained by using the regression function to estimate the value of Y for the values of X in the data set, rather than using the mean value of Y.
Alpha (see Chapter 32) is calculated using beta, so if the R-squared value of a fund is low, it is also wise not to trust the figure given for alpha.
Perhaps more revealing as a way to examine predictive ability is to look at out-of-sample forecasting ability of models rather than, or in addition to, "in sample" R-squared values.
It is important to note than an improved R-squared value should not be the only criterion by which a case classification measure is judged.
Now take a look at the R-squared value of 77% presented in cell B5 of the regression output in Figure 4.
The R-squared value is approximately only 16% which indicates that export of roundwood is weakly influenced roundwood production.
6) The (Aaa--T) regression has by far the best fit with an R-squared value of 0.
In comparison, the square root OLS model yielded the highest R-squared values, good fits across the Hosmer-Lemeshow deciles, and respectable RMSE and MAE statistics.
In Table 5 and 6 R-squared and Adjusted R-squared values are close to 0, which means that the links between the evolution of CPI, exchange rate and interest rate are not very strong.