Gross profit margin and R-Squared: Difference between pages

Revision as of 18:32, 3 February 2018

Regression analysis and hedge effectiveness.

R-squared is a measure of the goodness of fit between two variables.

In hedge effectiveness testing, it measures how closely the value of the hedging instrument tracks the value of the underlying exposure being hedged.

An R-squared parameter equal to or greater than 0.80 is generally considered effective.

Other metrics for hedge effectiveness include Slope.

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-Gross profit margin is the gross profit divided by revenue, usually expressed as a percentage.
+''Regression analysis and hedge effectiveness''.
+R-squared is a measure of the goodness of fit between two variables.
-Also known as the 'gross profit ratio'.
+In hedge effectiveness testing, it measures how closely the value of the hedging instrument tracks the value of the underlying exposure being hedged.
+An R-squared parameter equal to or greater than 0.80 is generally considered effective.
-==See also==
-*[[Gross profit]]
+Other metrics for hedge effectiveness include Slope.
-*[[Net profit margin]]
-*[[Operating profit margin]]
-*[[Profit margin]]
+== See also ==
-*[[Revenue]]
+* [[Basis risk]]
+* [[Efficiency]]
+* [[Hedge]]
+* [[Hedge accounting]]
+* [[Hedge effectiveness]]
+* [[Regression analysis]]
+* [[Slope]]