1. R² (R-Squared):
R² (R-squared) measures how closely a stock’s returns follow the market’s returns. It indicates the strength of the relationship between the stock and the benchmark (like DSEX).

2. Beta (β):
Beta measures a stock’s volatility relative to the market. It shows how much a stock typically moves when the benchmark moves.

3. Alpha (α):
Alpha is the excess return a stock earns compared to what its Beta predicts. It tells you whether the stock outperformed or underperformed the expected return.

Metric	Meaning	Good Value	What It Shows
R²	% of return explained by the market	Closer to 1	Correlation strength
Beta	Volatility compared to market	Around 1 for index tracking	Risk level
Alpha	Outperformance after adjusting for Beta	Positive	Skill or value added

Suppose you are analyzing a DSE stock:
R² = 0.85 → 85% Strongly correlated with DSEX and 15% Company-specific/idiosyncratic risk
Beta = 1.2 → 20% more volatile than the market
Alpha = 0.025 → +2.5% Outperformed market-adjusted expectations
➡ This stock is aggressive, closely tracks the market, and has generated positive excess return — a strong candidate for momentum-based portfolios.