Apple Information Ratio

AAPL -- USA Stock  

USD 188.52  0.37  0.20%

The Macroaxis Technical Indicators lookup allows users to check a given indicator for any equity or select from a set of available indicators by clicking on the link to the right. Please note, not all equities are covered by this module due to inconsistencies in global equity categorizations and data normalization technicques. Please check also Equity Screeners to view more equity screening tools
Symbol
Refresh
Apple has current Information Ratio of 0.4515. The Information Ratio is the ratio of the alpha component of total returns to the standard deviation of these excess alpha returns. The alpha component is the return that is attributable to the manager skill to time the market and is the residual after taking out the risk free return and the beta components from the total returns. While the Sharpe ratio considers the standard deviation of the total returns, the information ratio considers the variability of only the alpha component of the return (which also forms the numerator). In other words, the information ratio is merely Jensen alpha divided by its standard deviation.
Apple 
INFOR 
 = 
ER[a] - ER[b] 
STD[a] 
 = 
0.4515
ER[a] =   Expected return on investing in Apple
ER[b] =   Expected return on market index or selected benchmark
STD[a] =   Standard Deviation of returns on Apple

Information Ratio Comparison

Apple is rated second in information ratio category among related companies. It is rated fourth in maximum drawdown category among related companies reporting about  11.80  of Maximum Drawdown per Information Ratio. The ratio of Maximum Drawdown to Information Ratio for Apple is roughly  11.80 
The higher the information ratio, the greater the chances of the manager to make money in the future. The information ratio only looks to compute the return per unit of risk undertaken for the alpha component. This is important because alpha returns are risky, as they represent a zero sum game for the market as a whole. In fact, average alpha for the market as a whole is in practice slightly less than zero because of transaction and other costs. Therefore it is easy for a manager to take on ?alpha risk? and lose money that will bite into the beta returns.
Compare Apple to competition

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas