![]() In the dialog box, select "Trendline" and then "Linear Trendline". To add a regression line, choose "Add Chart Element" from the "Chart Design" menu. We can chart a regression in Excel by highlighting the data and charting it as a scatter plot. The time period under study may not be representative of other time periods.The data is a time series, so there could also be autocorrelation.There are only 20 observations, which may not be enough to make a good inference.Visa is a component of the S&P 500, so there could be a co-correlation between the variables here.With only one variable in the model, it is unclear whether V affects the S&P 500 prices, if the S&P 500 affects V prices, or if some unobserved third variable affects both prices.However, an analyst at this point may heed a bit of caution for the following reasons: ![]() From the R-squared, we can see that the V price alone can explain more than 62% of the observed fluctuations in the S&P 500 index.This indicates that this finding is highly statistically significant, so the odds that this result was caused by chance are exceedingly low. ![]()
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