The correlation coefficient, often denoted as “r,” is a statistical measure that evaluates the linear relationship between two variables. In other words, it helps to understand the extent to which one ...
The coefficient of determination (R²) is a statistical measure used to assess the goodness-of-fit of a linear regression model. It represents the proportion of variance in the dependent variable that ...
Leslie Kramer is a writer for Institutional Investor, correspondent for CNBC, journalist for Investopedia, and managing editor for Markets Group. Correlation measures the linear relationship between ...