Puma Biotechnology Information Ratio
| PBYI Stock | | | USD 6.16 0.01 0.16% |
The Information Ratio profile for Puma Biotechnology is based on historical price and volume observations. All inputs reflect available trading data across supported markets. Normalization methods and data feeds may affect reported values. Related screening structures are referenced through
Equity Screeners. Puma Biotechnology has a market cap of 312.89 M, operating margin of 22.67%, ROE of 27.97%. Portfolio-level context is available through
Your Equity Center. The view reflects the current state of portfolio allocation. The portfolio view uses available data to frame composition. A position in Puma Biotechnology is indicated here. It is reflected in the overall portfolio structure. Position weights are derived from the portfolio construction methodology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in private.
For information on how to trade Puma Stock refer to our
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Puma Biotechnology has current Information Ratio of 0.0577. 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.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0577 | |
Information Ratio Peers Comparison
Information Ratio Relative To Other Indicators
Puma Biotechnology places
fifth for information ratio among direct rivals. It is currently under evaluation for maximum drawdown among direct rivals recording roughly
525.90 in Maximum Drawdown for every unit of Information Ratio. Maximum Drawdown outpaces Information Ratio by
525.90 times for Puma Biotechnology
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, the average alpha for the market as a whole is in practice slightly less than zero because of the 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.
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