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metaMDS: how does stress affect ordination distance?

Quoting Kim Milferstedt <milferst at uiuc.edu>:
The scaling of NMDS is undefined, and in general you cannot compare  
axis scaling across ordinations. Indeed, you can multiply any scores  
by any constant and it doesn't change the configuration nor the  
solution. However, metaMDS implements Minchin's (DECODA) half-change  
scaling that fixes the scale: one unit means halving of similarity  
from the replicate similarity. Making some assumptions, you can  
compare the scale. The replicate similarity is one key concept here:  
you must assume that the solutions are comparable in that sense as  
well. Replicate similarity is the estimated dissimilarity among points  
at zero distance in ordination, or an estimate of dissimilarity of  
replicate samples form the same community, but found from the  
dissimilarity--distance plot of NMDS.
None.
metaMDS uses isoMDS and the same stress as isoMDS. That is, a "percent  
stress" multiplied with 100.
You may inspect the scaling plot by calling metaMDS with argument plot  
= TRUE which plots the half-change scaling regression.

If you really have only 12 points, you may be stretching some  
underlying logic beyond its breaking point.
Three order of magnitude is quite a lot for a value that is bound to  
be between 0 and 100, when values below one surely are artefacts: no  
stress but complete mapping. Possibly you don't have so many points  
that NMDS is wortwhile. You can always map three points in a plane  
with lighter machinery than NMDS:
Cheers, jari