How does R-squared help in assessing the relationship between Ethereum's market capitalization and trading volume?

1 answers

• Mar 19, 2022 · 3 years ago
  R-squared is a statistical measure that helps evaluate the relationship between Ethereum's market capitalization and trading volume. It quantifies the proportion of the variance in market capitalization that can be explained by changes in trading volume. A high R-squared value indicates a strong correlation, meaning that trading volume has a significant impact on Ethereum's market capitalization. On the other hand, a low R-squared value suggests a weak relationship, indicating that trading volume has minimal influence on market capitalization. By using R-squared, investors and analysts can better understand the dynamics between market capitalization and trading volume, allowing them to make more informed decisions regarding Ethereum investments.
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