The coefficient of determination is used in statistical analysis to assess how well a model explains and predicts future outcomes. It's more commonly known as r-squared.

Computing correlation can be time-consuming, but software like Excel makes it easy to calculate.

Correlation analysis between asset classes can also be done effectively. By leveraging Excel’s capabilities, investors can make informed decisions, manage risk, and optimize returns.

Negative coefficients indicate opposite direction of movement in most cases. The other key result is the correlation of the two. Regression statistics will typically include an R-squared value.