Methods

This section describes in more detail common technical strategies used in the context of factor investing. Methods are key to a successful implementation of factor strategies, providing a bridge between theory and investment management practice. These technical tools can be useful for various applications in finance practice, for example, for performance analytics, for building portfolios or for determining an optimal strategic factor allocation. We also want to highlight import concepts for researches, like the Fama-MacBeth procedure or more recent contributions in the context of factor selection.