What is Investment Analysis?

What is Investment Analysis?

Investment analysis is the practice of evaluating assets or securities in terms of value, risk and return, as well as correlation with other assets. It is to determine their possible place within various strategies and portfolios.

Some analysis will be done seeking the best option for specific asset classes, some analysis will focus on the best overall portfolio for a given situation. Analysis is done using quantitative metrics and indicators, some of which can be considered fundamental analysis tools and some of which are technical analysis tools.

Fundamental analysis examines the facts about a company, it’s accounts, ratios of debt to equity, market position in relation to peers, etc, and seeks companies and funds that represent quality that can be held long-term. Technical analysis uses price charts, trade volume histograms, oscillators, and Bollinger bands, among other things, to arrive at shorter-term trading decisions.

Technical analysts tend to believe that the fundamental value of a company is already priced into its stock, and that finding opportunities within the trends in the price, volume, and other measures will give an investor the best chance of beating the market.

What is Trend Analysis?
What is an Investment Club?
What are Investment Ideas?