Portfolio Performance Analysis: Alpha, Beta, and Regression

Evaluating investment performance goes far beyond looking at simple returns. To truly understand portfolio success, you must isolate market-driven movements from actual manager skill. This text-based course guides you through the foundational concepts of risk-adjusted returns, teaching you how to use regression analysis to calculate and interpret alpha and beta.\n\nThrough clear written explanations and practical step-by-step examples, you will learn to dissect investment performance and quantify risk.\n\nWhat you'll learn:\n- Understand the core concepts of systematic risk (beta) and active return (alpha) in portfolio theory.\n- Calculate alpha and beta using linear regression techniques to evaluate asset performance.\n- Interpret regression outputs, including R-squared and statistical significance, to assess model reliability.\n- Apply the Capital Asset Pricing Model (CAPM) to benchmark investment portfolios against the market.\n- Analyze portfolio risk profiles to make informed asset allocation and investment decisions.\n\nStarting with fundamental definitions of risk, return, and benchmarking, the course walks you through the mathematical and practical application of regression analysis in finance. You will learn to read regression tables and apply these insights to real-world investment scenarios.\n\nThis course is designed for beginners in finance, investment enthusiasts, and aspiring analysts who want to build a solid quantitative foundation. No prior background in regression analysis is required.\n\nStart mastering the quantitative tools used by professional portfolio managers to evaluate investment performance.