R-squared is a statistic used by investors to measure the correlation between the movement of a security and the movement of a benchmark index. It is also known as the coefficient of determination. The r-squared statistic is calculated by dividing the sum of the squares of the differences between the security’s returns and the benchmark’s […]
What Is R Squared For Etf
What Is R Squared For Etf R squared is a statistic used in finance to measure how closely an ETF tracks its underlying index. R squared ranges from 0 to 1, with 1 indicating perfect correlation and 0 indicating no correlation. A higher r squared indicates that the ETF is more closely tracking its underlying […]
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