Portfolio Style Allocation Analysis
This question is not very technical. I have a file with holdings (both for the fund and the benchmark) of a number of securities and need to do a style allocation analysis. For these securities, I have different 'factors' such as dividend yield, market cap, P/E, P/B etc and I have the weights in the fund and in the benchmark. The analysis should be done in excel, but I'm not sure how to do it. I could do a 'weighted average' of each factor and then compare the outcome of portfolio to the outcome of the benchmark. But that seems too straight forward. Do you have any suggestions on how to do such style allocation analysis? Thanks