VNET Group Information Ratio
| VNET Stock | | | USD 8.82 -0.54 -5.77% |
This module presents the Information Ratio indicator for VNET Group DRC using available market inputs. Exchange-specific data schedules may affect the recency of readings. VNET Group has a market cap of 2.37 B, operating margin of 5.69%, ROE of -1.72%. Allocation context is available in
World Market Map. The holding in VNET Group DRC represents an allocation. Position allocation is driven by the portfolio construction model. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
VNET Group DRC has current Information Ratio of 0.0464. 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] |
| = | 0.0464 | |
Information Ratio Peers Comparison
Information Ratio Relative To Other Indicators
VNET Group DRC maintains a
second standing in information ratio relative to competitors. It is currently under evaluation in maximum drawdown relative to competitors yielding
517.96 of Maximum Drawdown per Information Ratio. For VNET Group DRC, Maximum Drawdown stands at
517.96 times Information Ratio
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.
Compare VNET Group to Peers
Other Technical Indicators