Information Ratio
Compare active return with tracking error.
Your numbers
Information ratio
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
Up to three snapshots in this tab. Loading one replaces the current inputs.
Formula
Use IR = (R−B)/e. R is portfolio return, B is benchmark return, and e is tracking error. All inputs must refer to the same period and rate units.
Compare active return with tracking error.
Worked example
- Portfolio return (%)
- 10
- Benchmark return (%)
- 7
- Tracking error (%)
- 6
- Information ratio
- 0.5
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: c79cfe65aa1b · Example checked: