The coefficient of determination is used in statistical analysis to assess how well a model explains and predicts future outcomes. It's more commonly known as r-squared.

In finance, correlation is used in several facets of analysis including the calculation of portfolio standard deviation. Computing correlation can be time-consuming, but software like Excel makes ...

Much stronger than the oil correlation, but still statistically meaningless. We can take this one step further and square the correlation coefficient to get the r-squared.

This article explains the significance of linear correlation coefficients for investors, how to calculate covariance for stocks, and how investors can use correlation to predict the market.

Correlation analysis between asset classes can also be done effectively. By leveraging Excel’s capabilities, investors can make informed decisions, manage risk, and optimize returns.