Yeah, sr I didnt make it clear. RSQ is R-Square. Totally aware of the concepts but I got some troubles interpreting the results here. I'm doing 1 factor analysis only so I do not use many variables. Definitely I want to do forecasting. The issue here is, if I do rolling regression day by day and see a declining trend in R-square. That seems to indicate that my independent (even though the index is not that independent) variable has less and less power in predicting the future price. Hence, what I can think of is, waiting to see when R-square is trending up to decide to reuse the model again. Thanks for sharing the paper. I'll take a look. In the meantime, hope someone could help clarify the sum of R-square trending issue. Dennis
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