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 ...

The R-squared value is a statistical measure that compares the movement of a fund against that of its benchmark index. The R-squared value ranges from 0 to 1. A value closer to 1 indicates that the ...

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 ...

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 ...