Portfolio Attribution

Portfolio attribution is the process of analyzing the sources of a portfolio's performance to determine what drove the gains or losses. It breaks down returns into categories such as asset allocation, sector selection, and market timing.

For a crypto portfolio, this might involve analyzing the performance contribution of different tokens, staking yields, and derivative hedges. By understanding which components are adding value, investors can refine their strategies and optimize their asset allocation.

It provides a transparent view of where risk is being taken and where rewards are being generated. This is a standard practice for professional fund management and is increasingly applied to decentralized asset management.