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Analyze a Portfolio's Factor Performance

Understanding risk-adjusted returns, as understood by Sharpe on a per-factor basis, to know how (unwanted) factor bets pay out.

Edgar Nuñez avatar
Written by Edgar Nuñez
Updated over a year ago

A portfolio’s performance includes determining how bets on risk are paying out. With the factor performance attribution breakout, customers can answer the question “Did I deliver in performance on my risk allocation?”

Found under Analyze.Factors, customers can clearly evaluate how risky factors either help or harm the book as understood by their Sharpe on a per-factor basis.

The Factor performance table takes advantage of many existing OP tools, such as:

  • evaluating factor performance using any risk model

  • displaying active metrics to any selected benchmark

  • instantly calculating the factor performance for any selected period

    • note: less than one year of cumulative returns is used in annualized returns and annualized vol when a date period of less than 1 year is selected

  • segmenting the portfolio to analyze the factor performance for any specific group

This screen should help investment teams quickly evaluate their skill with factor bets. Contact Omega Point to learn how to take action and improve these metrics!

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