ELI5: Explain Like I'm 5

Fama–MacBeth regression

Fama-Macbeth regression is a way to test whether different characteristics of companies can help explain why some companies' stock prices do better than others. It looks at many different variables (like the size of a company, how long it has been around, or how profitable it is) and then it tries to find relationships between those variables and the stock prices. The goal is to see if we can explain why some stocks do better than others. It is often used by investors to figure out which stocks they should buy and which stocks they should sell.