WEIGHT Effect variation (fig 2.1)
Objective: To determine the Weight Effect for a given allocation under various price scenario.
For example Switzerland country fund with 0.8% allocation to Energy sector, would have a Weight Effect running between +1.25% to -0.5% corresponding to price return variation between -25% and +20%.
Likewise Norway with 39.9% allocation would have a much larger Weight Effect swing for the same return range.
PRICE Effect variation (Fig 2.2)
Objective: To determine the Price Effect for a given return under various allocation scenario.
For example Switzerland country fund with -26% return estimate on Energy sector, would have a Price Effect running between -1% and -5% corresponding to allocation variation between 1% and 40%.
Likewise Norway with -19% return would have a much smaller Price Effect swing for the same allocation range.
