# What does performance attribution mean?

**Performance attribution**, profit

**attribution**, or investment

**performance attribution**is a set of techniques that

**performance**analysts use to explain why a portfolio's

**performance**differed from the benchmark. This difference between the portfolio return and the benchmark return is known as the active return.

Likewise, 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**.

Beside above, how do you calculate 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.

In this manner, 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.

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.