Factor Models and Factor Investing

Factor model pages explain how investors define, test, and apply systematic sources of return.

This subsection groups the core model and data terms behind factor investing.

In this section

• Factor Investing: Understanding the Strategy and Its Mechanisms
  An in-depth guide to factor investing, exploring the statistical similarities among investments to identify and leverage common factors for strategic investment.
• Factor Models: Explaining Asset Returns
  Comprehensive overview of factor models, their types, historical context, key events, explanations, formulas, importance, examples, and more.
• Fama-French Data Library: Comprehensive Data for Asset Pricing Models
  An extensive data collection curated by Eugene Fama and Kenneth French, supporting multifactor asset pricing models.
• Fama-French Three-Factor Model: Understanding Asset Pricing
  The Fama-French Three-Factor Model extends the Capital Asset Pricing Model (CAPM) by adding size and value factors to the market risk factor, providing a more comprehensive view of asset returns.