Building a handrail for your deck may seem like a simple task. In many cases it is -- until the time arrives to figure out how to get the balusters or spindles evenly spaced along the handrail. Evenly spaced spindles improve the symmetry of the rails and lend a professional look to the project. But finding the right measuring formula may give the average home handyman pause.
R-squared is a statistical measurement that determines the proportion of a security's return, or the return on a specific portfolio of securities, that can be explained by variations in the stock market, as measured by a benchmark index.
R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination, or the coefficient of multiple determination for multiple regression.The definition of R-squared is fairly straight-forward; it is the percentage of the response variable variation that is explained by a linear model.-squared = Explained variation / Total variation. R-squared is always between 0 and 100%: 1  0% indicates that the model explains none of the variability of the response data around its mean. 2  100% indicates that the model explains all the variability of the response data around its mean.