what if the coefficient of determination is greater than 1 
the coefficient of determination can t be more than one because the formula always results in a number between 0 0 and 1 0 something is incorrect if it s greater or less than these numbers 1the bottom linethe coefficient of determination is a ratio that shows how dependent one variable is on another investors use it to determine how correlated an asset s price movements are with its listed index it doesn t demonstrate dependency on the index when an asset s r2 is closer to zero it s more dependent on the price moves the index makes if its r2 is closer to 1 0 