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R² (R-squared)

Proportion of variance in the outcome explained by the model.

R² ranges from 0 (model explains nothing) to 1 (model explains everything). In finance, even a high-performing ML model might have an R² of just 0.03 — predicting markets is genuinely hard.

from sklearn.metrics import r2_score
r2 = r2_score(y_test, y_pred)