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What Is R-Squared?

By Jeremy BowmanUpdated Feb 25, 2025 at 10:39 PM

Key Points

  • R-squared values range from 0 to 1, indicating the fit and explanatory power of a regression model.
  • Values below 0.3 suggest weak explanatory power; above 0.7 indicate strong relationships.
  • In finance, R-squared helps analyze effects of various metrics on stock prices or interest rates.

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