Current location - Trademark Inquiry Complete Network - Tian Tian Fund - How to measure the correlation between funds and securities markets
How to measure the correlation between funds and securities markets

Measure by the following methods:

1. Beta coefficient: Beta coefficient is one of the important indicators to measure the correlation between the fund and the market. It represents the rate of change of a fund's return relative to the market index.

2. Correlation coefficient: Correlation coefficient is another indicator to measure the correlation between the fund and the market. It indicates the correlation between the fund's return rate and the market index, and its value ranges from -1 to 1.

3. R-squared value: R-squared value is another indicator of the correlation between the fund and the market. It indicates how much of the fund's return can be explained by the market index. The higher the R-squared value, the stronger the correlation between the fund's return rate and the market index.