I'm analysing a regression analysis output, and i'm just a little confused on the R Squared output,
the formula for R^2 is r(X,Y) = [ Cov(X,Y) ] / [ StdDev(X) x StdDev(Y) ]
So breaking this down, is the Covariance the extreme values of both my data?
and
I know an Rsquared of 1.0 fits the regression line perfectly, mine is coming out as 0.456
so am i right in saying 40.6% of the time my investment performance is explained by risk exposure, and 59.4% is pure luck?
any help would be good thanks


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