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Illya Gerasymchuk
Financial & Software Engineer

Information Ratio is a risk-adjusted measure of how good your portfolio performs against the market average/benchmark

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Illya Gerasymchuk

2025-05-17 15:00

Information Ratio is a risk-adjusted measure of how good your portfolio performs against the market average/benchmark

πŸ“ˆ Risk=how much your portfolio return deviates from benchmark
πŸ’‘IR=1: for every 1% of risk there is 1% return
πŸ‘‰Look for IR>1

πŸ”‘ metric in quantitative finance

Information Ratio is a risk-adjusted measure of how good your portfolio performs against the market average/benchmark
πŸ’¬