# How do you calculate performance attribution?

**How to Calculate Performance Attribution**

- Locate Sector Weights and Returns of the Portfolio.
- Multiply Sector Weights by Differences in Returns.
**Calculate**Aggregate Estimate for Pure Sector Allocation.**Calculate**Sector Weights by Differences in Returns.**Calculate**Aggregate Estimate for Returns.- Multiply Benchmark Weight by Difference in Returns.

Also asked, how do you calculate performance attribution analysis?

The **attribution analysis** dissects the value added into three components: Asset allocation is the value added by under-weighting cash [(10% − 30%) × (1% benchmark return for cash − 2.4% total benchmark return)], and over-weighting equities [(90% − 70%) × (3% benchmark return for equities − 2.4% total benchmark return)].

One may also ask, what is interaction effect in attribution? The **interaction effect** measures the combined impact of an investment manager's selection and. allocation decisions within a segment. For example, if an investment manager had superior. selection and overweighted that particular segment, the **interaction effect** is positive.

Then, what is performance attribution analysis?

**Attribution analysis** is a sophisticated method for evaluating the **performance** of a portfolio or fund manager. It attempts to provide a quantitative **analysis** of the aspects of a fund manager's investment selections and philosophy that lead to that fund's **performance**.

What is the difference between contribution and attribution?

“**Attribution**” is the idea that a change is solely due to your intervention. “**Contribution**” is the idea that your influence is just one of many factors which contribute to a change.