I have a decent knowledge of econometrics, but would like to have some help with the procedure of FF regression.Suppose I would like to know if a stock, say AAPL, has outperformed the Fama French 3 factor model.So,I download data from Kenneth French website and run the regression with (AAPL minus risk free rate) as dependant variable and SMB,HML and RMRF as indpt variable.
1) The alpha or intercept value is a "single value" or a number and not a time series.But,I want to know how each day the AAPL stock has outperformed the fame french model.So, if I take the residuals(which will be a time series data) from the above regression,is it the excess returns over FF model? Is the procedure right or wrong?
2) Or should I multiply the betas from the regression with SMB,HML,RMRFcoloumns , then AAPL-(bta1*SMB + beta2*HML + beta3*RMRF).
Thanks in advance.