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 ...

If you ever need to check whether a fund's benchmark is what the fund house claims it to be, then you look up R-Squared. It is a statistical tool that can measure--in 0 to 100 bps--how well a scheme ...

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 ...

Let's understand what is R-Squared in a mutual fund factsheet. 1. R-squared is a statistical measure that indicates how closely a mutual fund’s performance correlates with a benchmark index. 2. The ...