RSQ Function Excel | Measure Correlation Strength

Introduction to the RSQ Function in Excel

The RSQ function in Excel is a powerful statistical tool used to calculate the coefficient of determination, or R-squared, between two data sets. This helps users evaluate how well one variable explains the variation in another.

Whether you’re working on business forecasting, scientific research, or financial modeling, RSQ is essential for identifying strong or weak linear relationships. It works consistently across Windows, macOS, and Ubuntu, giving all users the same reliable results 📊.

What Is the RSQ Function in Excel

RSQ() stands for R-Squared, a value that quantifies the strength of a linear relationship between two data sets. It’s commonly used in regression analysis and performance modeling.

The value of RSQ ranges from 0 to 1:

1 means a perfect fit
0 means no correlation

It’s frequently used in:

📈 Sales and marketing trend analysis
📉 Financial returns comparison
🧪 Scientific experiments

Syntax of the RSQ Function

=RSQ(known_y’s, known_x’s)

known_y’s: Dependent variable data
known_x’s: Independent variable data

For example:

=RSQ(B2:B10, A2:A10)

This calculates the R-squared value between two columns of numbers.

What R-squared Represents in Statistics

R-squared shows how much of the variability in one variable can be explained by the other variable using a linear trend line.

RSQ Value	Interpretation
1.0	Perfect correlation
0.7–0.99	Strong correlation
0.4–0.69	Moderate correlation
0.1–0.39	Weak correlation
0.0	No correlation

✅ A higher RSQ means a better fit for forecasting and analysis.

Example 1: Measuring Sales and Advertising

Suppose you have weekly data:

Week	Ad Spend ($)	Sales ($)
1	2000	5000
2	2500	6000
3	3000	7000
…	…	…

Formula:

=RSQ(C2:C8, B2:B8)

This tells you how strongly ad spending affects sales performance.

Example 2: R-squared for Stock and Market Index

You want to measure how well a company’s stock follows the S&P 500.

Day	S&P 500 Return	Company Stock Return
1	0.5%	0.7%
2	-0.2%	-0.1%
3	1.2%	1.5%

Formula:

=RSQ(C2:C30, B2:B30)

High RSQ indicates the stock moves closely with the index.

How to Use RSQ with Cell Ranges

Use dynamic cell ranges for flexible calculations:

=RSQ(B2:B100, A2:A100)

Paired with data tables or dynamic ranges, this formula can be reused across projects without needing to update each reference manually.

Interpreting RSQ Results

Near 1: Strong linear correlation
Near 0: Little to no correlation
Negative numbers: Not applicable (RSQ cannot be negative)

🔎 Useful for validating regression results or testing model accuracy

RSQ vs CORREL Function in Excel

Function	Output	Use Case
RSQ	Square of r	Strength of fit (r²)
CORREL	Pearson r	Direction and strength

Use CORREL() to know positive or negative trends
Use RSQ() when you only care about the strength of the relationship

Nesting RSQ with IF and ROUND

Add logic or formatting to your analysis:

=IF(RSQ(B2:B10, A2:A10)>0.8, "Strong", "Weak")

Round the result for reporting:

=ROUND(RSQ(B2:B10, A2:A10), 2)

📋 Makes outputs presentation-ready

Formatting RSQ Output

By default, RSQ returns a decimal. You can:

Format the result cell to Number
Use Percentage format for presentations
Include labels with TEXT():

="R-squared: " & TEXT(RSQ(B2:B10,A2:A10),"0.00")

🧾 Clear outputs improve report readability

RSQ Function on Windows

Use F2 to edit formulas
Auto-fill with Tab after typing =RSQ
Available in all versions from Excel 2007 onward

💻 Powerful for corporate analysts and students alike

RSQ Function on macOS

Supported in all Excel for Mac versions
Use Control + U to edit formulas
Works identically to Windows experience

🍏 Apple users can calculate and format RSQ values without any limitations

RSQ Function in LibreOffice on Ubuntu

LibreOffice Calc syntax:

=RSQ(B2:B10, A2:A10)

Fully supported in most Linux distributions
Ideal for schools and open-source environments 🐧

Visualizing R-squared Values with Charts

Steps:

Create a scatter plot
Add a trendline
Check Display R-squared value on chart

This shows how well the trendline fits your data visually 📈

Using RSQ for Regression and Forecasting

In data models:

Validate predictions with RSQ
Combine with LINEST, TREND, and FORECAST
Detect overfitting or underfitting in models

R-squared is essential for quality data-driven decisions.

Common Errors with RSQ Function

Error	Cause	Fix
`#N/A`	Different-sized arrays	Match the number of rows
`#VALUE!`	Non-numeric data in the range	Clean your data
0 result	No linear relationship	Double-check data trends

Always ensure your ranges are the same size and contain only numbers.

Best Practices for Accurate RSQ Analysis

Remove blanks or text from your data
Ensure both arrays are aligned
Visualize the data with scatter plots
Always compare RSQ with other statistical metrics

A single RSQ value rarely tells the full story 📌

FAQs About RSQ Function in Excel

What does the RSQ function do in Excel?
It calculates the R-squared value to show how much variation in one variable is explained by another.

How is RSQ different from CORREL?
RSQ returns r² while CORREL returns r. RSQ shows strength but not direction.

Can I use RSQ in Excel for Mac?
Yes, it’s fully supported and functions the same as in Windows.

Does RSQ work in LibreOffice on Linux?
Yes. The function is supported in LibreOffice Calc on Ubuntu.

Why is my RSQ result zero?
There may be little to no correlation, or your data may not follow a linear trend.

Final Thoughts on RSQ Function in Excel

The RSQ function in Excel is a reliable and essential tool for measuring the strength of linear relationships. Whether you’re building business dashboards, analyzing scientific results, or studying stock trends, this function helps you quantify the accuracy of your assumptions.

Fully compatible with Windows, macOS, and Ubuntu, RSQ fits seamlessly into every analyst’s toolkit. Start using it today to bring statistical strength to your Excel analysis 📈

Complete List of Windows Keyboard Shortcuts

If you need help for Windows, you can find a whole list of all keyboard shortcuts here.

https://keyboard-shortcuts.org/

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