Active Return & Tracking Error Calculator

Calculate portfolio active return (alpha), tracking error (TE), and Information Ratio vs. a benchmark. Decompose tracking error into systematic and idiosyncratic components. Essential for passive and smart-beta fund management.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How to Use

Enter the values for the scenario you are assessing. Calculate portfolio active return (alpha), tracking error (TE), and Information Ratio vs. a benchmark. Decompose tracking error into systematic and idiosyncratic components. Essential for passive and smart-beta fund management. Use the tracking error result to inform your calculation.

Frequently Asked Questions