Active Return to Tracking Error Ratio
Compare return above benchmark with tracking error.
Your numbers
Ratio of active return to tracking error
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
Compare scenarios
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Formula
Use IR = (R−B)/e. R na portfolio return, B na benchmark return, and e na tracking error. All inputs must cover the same period and use the same rate units.
Compare return above benchmark with tracking error.
Example wey show the calculation
- Return for the portfolio (%)
- 10
- Return for the benchmark (%)
- 7
- Size of tracking error (%)
- 6
- Ratio of active return to tracking error
- 0.5
Where e fit work and limits
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: c79cfe65aa1b · Example don get check: