Portfolio analysis is a method used to evaluate the performance and risk of a collection of investments, known as a portfolio. This process helps investors understand how different assets contribute to overall returns and how they interact with each other. By assessing factors like risk, return, and market conditions, investors can make informed decisions about buying, holding, or selling assets. The analysis often involves tools like the Boston Consulting Group (BCG) Matrix or Modern Portfolio Theory, which categorize investments based on their growth potential and risk levels. This systematic approach allows investors to optimize their portfolios, balancing risk and return to meet their financial goals.