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R Squared

A statistical measure that represents the percentage of a fund or security’s movements that can be explained by movements in a benchmark index.

In statistics, the coefficient of determination R-Squared is used in the context of statistical models whose main purpose is the prediction of future outcomes on the basis of other related information. It is the proportion of variability in a data set that is accounted for by the statistical model, and provides a measure of how well future outcomes are likely to be predicted by the model

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