Not every trading day can tell you whether a manager has skill. On Pure Beta days, a broad market move carries nearly every stock with it, correlation spikes, and selection is swamped by the market. On Alpha Opportunity days, stocks move more independently, and selection can show up as measurable alpha. PBAO™ separates the two, so skill is measured where it can be seen.

This page applies that classification to the Alpha Convergence live record. The method is set out in our paper Where Alpha Cannot Be Measured: Regime-Conditional Performance Attribution, forthcoming in the Journal of Investment Management.

PBAO asks a narrow question: on Alpha Opportunity days alone, is the strategy's return distinguishable from zero? Statistical Validation asks the broad one: across every trading day, did the strategy earn excess return over RSP, its prespecified benchmark?