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R-Squared Related News
in chronological order

See also: R Squared Related Books, R Squared Related Scholarly Papers, or R Squared Home Page.

Table of Contents:

May 2006
- May 26 - Eh, you're only off by $3o,ooo today...
- May 11 - Can You Keep a Secret?
- May 4 - Spreading the Risks
April 2006
- April 19 - All-Star Money Managers
February 2006
- February 10 - Don’t just look at ‘Returns’, look at quality too
January 2006
- January 26 - iShares Dow Jones U.S. Energy (AMEX: IYE)

Eh, you're only off by $3o,ooo today...

May 26, 2006

From Progressive U:
Really, when dealing with reality one rarely has a currency which does not just devalue rapidly, but one that devalues constantly at a fairly constant rate. On average, for the past 150 days, the Zimbabwean dollar has devalued at a rate of $1,000 ZWD per USD on the parallel market. There have only been two recorded deviations from standard, and those canceled eachother out.

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Can You Keep a Secret?

May 11, 2006

From The Motley Fool:
When it comes to spotting index-huggers, the most important tool in the analytical toolkit is R-Squared, a metric that allows you to gauge just how much of a fund's performance is due to movements in a given benchmark. Other secrets, however, are tougher to uncover -- and that's as true in the broader corporate world as it is in the mutual fund industry. Perhaps even more so.

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Spreading the Risks

May 4, 2006

From SmartMoney.com:
ASSET ALLOCATION HAS about as much sex appeal as watching a documentary on bee pollination. Even Richard Ferri, author of "All About Asset Allocation," published last fall, concedes it's a yawn-inducing endeavor. "It's a no-nonsense, businesslike approach to portfolio management that will definitely put you to sleep," Ferri writes.

That said, proper asset allocation is a necessity for every investor seeking financial security. Creating, implementing and adhering to an asset-allocation strategy — it's not as easy as it sounds, he warns — is critical to any successful, long-term investing effort, according to Ferri, who's also president of Portfolio Solutions, a Troy, Mich.-based investment-management firm.

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All-Star Money Managers

April 19, 2006

From The Motley Fool:
As the Fool's resident fund geek, I spend an inordinate amount of time poring over mutual fund data. I gauge a fund's performance, for instance, relative to the broader market's and to that of like-minded peers. I check out calendar-year returns to get a sense of how the fund's strategy has fared during the market's various cycles, and I get down and dirty with the fund's risk/return profile, too.

When it comes to that part of the job, alpha, beta, standard deviation, and R-squared are all important tools in the analytical toolbox that I use to separate the fund industry's keepers from its duds in the Fool's Champion Funds newsletter service.

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Don’t just look at ‘Returns’, look at quality too

February 10, 2006

From Moneycontrol.com:
The mutual fund industry is on the roll, managing around 250 pure equity oriented schemes. And with the many New Fund Offers, this number is steadily going up.

This vast universe of schemes is making it difficult for the investors to select the ‘good’ funds to invest in. The easiest way, of course, is to choose the best performing funds in terms of ‘returns’. One could look at say 1-yr to 3-yr performance of the funds and choose those, which have yielded maximum returns. (Read more - 5 mistakes people make while investing. Are you guilty?)

Yes, the returns are important but it is also important to look at the ‘quality’ of the returns. ‘Quality’ determines how much risk a fund is taking to generate those returns.

Equity investing is a risky business and it is important that a fund should be managing risks effectively. This is especially true now when the market has run-up quite sharply and the valuations are stretched. In the event of a sharp correction, it is the quality funds, which will usually fall less and also rise up faster when the up-turn begins. (Read more - Hidden bombs in your portfolio? Find out NOW)

One can make a judgment on the quality of a fund from various ratios such as Standard Deviation, Sharpe Ratio, Beta, Treynor Ratio, R-Squared, Alpha etc. The names may look intimidating, but are not so difficult to understand. Moreover we will not be looking at how to calculate these numbers (the process is quite cumbersome and these are easily available on websites/magazines), but what they represent and how one should interpret them.

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iShares Dow Jones U.S. Energy (AMEX: IYE)

January 26, 2006

From I-Newswire.com:
The iShares Dow Jones U.S. Energy Sector Index Fund jumped two spots up the ETF Momentum rankings last week and is currently one of top 5 ranked ETF funds. That level is nothing new for iShares Dow Jones U.S. Energy ( AMEX: IYE ), which has seen its share values more than double over the last three years.

The fund invests in a representative sampling of stocks that make up the Dow Jones U.S. Energy Sector Index, usually holding between 50 and 60 stocks. The index includes the energy in the Dow Jones U.S. Total Market Index and is weighted by market capitalization, meaning larger stocks receive larger representation.

Learn more about ETF investing and using Fidelity Independent Adviser’s ETF Momentum Tracker by visiting http://www.fidelityadviser.com/readMe_ETF.asp. Each week I will give you concise buy and sell recommendations for to iShares ETFs.

IYE is heavily concentrated and is currently focused on the largest of the large caps these days, integrated oil and gas firms. ExxonMobil, at more than one-fifth of the fund’s holdings, Chevron, and ConocoPhillips made up more than 42% of the fund’s portfolio on Jan. 19.

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