What is fund attribution?
Moreover, 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.
One may also ask, what is equity attribution? Equity attribution It breaks down a portfolio's performance into allocation, selection and optionally, interaction. Attribution analysis can be calculated in StatPro Revolution using either the arithmetic (GRAP) or geometric approach.
Thereof, 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 factor attribution?
Factor-based performance attribution is commonly used to explain the sources of realized return of a portfolio. The methodology relies on a factor model of asset returns to decompose a portfolio's return according to a set of factors.