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WebNov 13, 2024 · The adjusted R-squared is a modified version of R-squared that adjusts for the number of predictors in a regression model. It is calculated as: Adjusted R2 = 1 – [ (1-R2)* (n-1)/ (n-k-1)] where: R2: The R2 of the model. n: The number of observations. k: The number of predictor variables. Because R2 always increases as you add more predictors ... WebDec 29, 2024 · A 100% R-squared means that all movements of a security (or other dependent variable) are fully explained by the movements of the index (or the independent variable (s) you are interested in). When investing, a high R-squared, between 85% and 100%, indicates that the performance of the security or fund moves relatively in line with the index.
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WebMay 13, 2024 · R-Squared, also known as the Coefficient of Determination, is a value between 0 and 1 that measures how well our regression line fits our data. R-Squared can be interpreted as the percent of ...
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