Constant asset returns and undefined R-squared

Use an original constant asset record

Suppose benchmark returns are −1%, 0% and 1%, while the asset return is always 2%. The fitted line has slope zero and intercept 2%, with every residual zero. Benchmark variation still identifies the slope.

Inspect the total centered sum

Asset total centered sum Syy is zero. The R² expression 1−SSE/Syy then divides zero by zero. Correlation also divides by asset dispersion, so it is not defined by its usual formula.

Read the different outputs

Avoid a fabricated fit score

The tool omits correlation and R² instead of inventing a 100% explained-variation value. A constant observed record also does not establish that the asset has no future risk.