r-squared A measurement of how closely a portfolio's performance correlates with the performance of a benchmark index, such as the S&P 500, and thus a measurement of what portion of its performance can be explained by the performance of the overall market or index. Ranges from 0 to 1 (or 100), where 0 indicates no correlation and 1 (or 100) indicates perfect correlation. see also relative volatility, modern portfolio theory.
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