R-Squared
The proportion of a portfolio’s return variation explained by its benchmark, from 0 to 100%. A high R-squared means beta drives returns; a low one points to more idiosyncratic, manager-specific risk.
The proportion of a portfolio’s return variation explained by its benchmark, from 0 to 100%. A high R-squared means beta drives returns; a low one points to more idiosyncratic, manager-specific risk.