when you have the coefficient of determination you use it to evaluate how closely the price movements of the asset you re evaluating correspond to the price movements of an index or benchmark the coefficient of determination for the period was 0 347 in the apple and s p 500 example 
apple is listed on many indexes so you can calculate the r2 to determine if it corresponds to any other indexes price movements a coefficient of determination of 0 357 shows that apple stock price movements are somewhat correlated to the index because 1 0 demonstrates a high correlation and 0 0 shows no correlation one aspect to consider is that r squared doesn t tell analysts whether the coefficient of determination value is intrinsically good or bad it s their discretion to evaluate the meaning of this correlation and how it may be applied in future trend analyses 