What does the coefficient of determination actually mean?

The coefficient of determination (R2) is a measure of the proportion of variance of a predicted outcome. With a value of 0 to 1, the coefficient of determination is calculated as the square of the correlation coefficient (R) between the sample and predicted data. read more

The higher the coefficient of determination is the more likely the investment will change as the benchmark index changes. The standard r 2 scale is measure from 1 to 100 with 100 being the highest indicator of variation correlation. read more

In regression, the R 2 coefficient of determination is a statistical measure of how well the regression predictions approximate the real data points. An R 2 of 1 indicates that the regression predictions perfectly fit the data. read more