Concept · Stock-level risk (bottom-up)
Return attribution
Splitting a stock's *realized return* into contributions from each factor. Distinct from variance: a name can be variance-dominated by market yet return-driven by residual.
In depth
Splits a realized return (not variance) into per-factor contributions. Over multiple periods the contributions compound, so RiskModels uses a geometric bridge to keep them additive.
Compute it with the API
GET /api/returns-decomposition
# pip install riskmodels-py
client.get_returns_decomposition("NVDA")In the methodology
Multi-period attribution: the geometric bridge →Referenced by (2)
- NVIDIA: The Economic-Profit Burden of an AI Bottleneck
A RiskModels.app visual case study in market-implied expectations
- The Persistence of Stock-Selection Residuals
A point-in-time, holdings-based decomposition of mutual fund performance — the stock-selection residual persists out of sample; style timing and sector timing, measured the same way, do not.