Data analysis| R2

What Does an R-Squared Value of 0.9 Mean?

Essentially, an R-Squared value of 0.9 would indicate that 90% of the variance of the dependent variable being studied is explained by the variance of the independent variable. For instance, if a mutual fund has an R-Squared value of 0.9 relative to its benchmark, that would indicate that 90% of the variance of the fund is explained by the variance of its benchmark index.

 

 

https://www.investopedia.com/terms/r/r-squared.asp

R-Squared Formula, Regression, and Interpretations