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Glossary

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There are 3 names in this directory beginning with the letter R.
R2
In investment analysis, R2 is a statistical measure of fit used to determine the correlation of an investment or portfolio to its benchmark. Because it shows the correlation of an investment to its benchmark, investors can interpret how much of the investment's movement can be explained by the movement of its benchmark. For example, 100% R2 means that all of the movements of an investment can be explained by the movement of its benchmark. Watch Video

 

Recession
According to the National Bureau of Economic Research, a recession is defined as a significant decline in economic activity spread across the economy. It lasts more than a few months and is normally visible in a decline in real GDP, real income, employment, industrial production, and wholesale-retail sales. Recession can also occur in specific industries when that industry experiences a significant economic activity. Watch Video

 

Risk
Risk, from an investor's point of view , is the amount of uncertainty that an investor is willing to take in regards to the future expected return of their investment. Watch Video