You're absolutely correct. A strong correlation in regression analysis (often indicated by a high $R^2$ value) suggests a relationship between the variables, but it doesn’t necessarily mean the model fits well. The quality of fit depends on the distribution and pattern of residuals, which show the discrepancies between the observed and predicted values. Even if a model has a strong correlation, large or systematically patterned residuals indicate that the model may not be capturing all relevant aspects of the data.

Key points to consider:

1. Residual Analysis: Residuals should ideally be small, random, and normally distributed around zero. If residuals show a pattern (like a curve or trend), this suggests that the model might be missing some important variables or interactions.

2. Homoscedasticity: The variance of residuals should remain constant across all levels of the independent variable(s). If the spread of residuals increases or decreases, it indicates heteroscedasticity, which can undermine the reliability of the regression results.

3. Outliers and Leverage Points: Outliers (data points far from the regression line) or high-leverage points can distort the correlation and lead to misleading interpretations of fit quality.

4. Normality of Residuals: In many regression models, the residuals are expected to be normally distributed. Deviations from normality, like skewness, can indicate issues in model accuracy or suggest transformations to improve fit.

5. Bias in Prediction: A strong correlation does not address bias in predictions. If a model consistently overpredicts or underpredicts, then it is not well-fitted, regardless of correlation strength.

Would you like further details or have any questions about this concept?

Here are five questions that build on this information:

1. How do residual plots help in diagnosing issues with model fit?
2. What are some transformations that can improve model fit when residuals show patterns?
3. How does multicollinearity affect the reliability of regression coefficients?
4. Why is it important to test for homoscedasticity in regression analysis?
5. How can one address outliers in regression analysis to improve model accuracy?

Tip: Residual plots are one of the best tools for assessing model fit visually, as they clearly show whether the residuals follow random dispersion or show a trend.