R squared

From MarketsWiki
Jump to navigation Jump to search


FTSE Russell banner 2016.gif

R squared is a measure of the diversification of the portfolio; in essence, it indicates the extent to which fluctuations are explained by market results. A portfolio that has R square equaling 1.0 indicates that 100% of the returns are market determined.[1]

References[edit]

  1. "Hedge fund terms”. Liberty Gateway.