In Portfolio Composition we went over some basic portfolio theory.  Then in Financial Risks we detailed a variety of investment risks.  In this section and its subsections we'll discuss how to identify investments with potential opportunities.

There are a number of ways in which to identify investment opportunities.  Below are some of the common analysis methods that we discuss further in their corresponding subsections:

• Technical Analysis - the analysis of price and volume information to identify liquidity, momentum, trends, and reversals
• Fundamental Analysis - the analysis of financial statements to identify valuation, performance, and credit risks
• Quantitative Analysis - the statistical analysis (with computational assistance) of market data to identify metrics such as risk adjusted performance

(each bullet point is a clickable link to a detailed subsection)

The creation (or capturing) of CAPM alpha (described in Portfolio Composition) is driven by using these methods of analysis.