

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. We can also see that the p-value is very small (0.000036), which also corresponds to a very large T-test.In the regression output above, we can see that for every 1-point change in Visa, there is a corresponding 1.36-point change in the S&P 500.The bottom line here is that changes in Visa stock seem to be highly correlated with the S&P 500.
