Free online Information Ratio Calculator. Measure consistency of excess return vs benchmark. Input portfolio return, benchmark return, and tracking error. No registration required.
Information Ratio = (Portfolio Return - Benchmark Return) / Tracking Error. Measures excess return per unit of active risk.
Above 0.5 is good, 0.75+ excellent, 1.0+ outstanding. Positive means consistently beating the benchmark.
Tracking error is the standard deviation of return differences vs benchmark. Measures active management risk.
IR focuses on excess return vs benchmark, Sharpe on absolute return. IR better evaluates active management skill.