Chevron Information Ratio

Chevron Corporation -- USA Stock  

USD 115.17  0.45  0.39%

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Chevron Corporation has current Information Ratio of (0.17). 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.
Chevron 
INFOR 
 = 
ER[a] - ER[b] 
STD[a] 
 = 
(0.17)
ER[a] =   Expected return on investing in Chevron
ER[b] =   Expected return on market index or selected benchmark
STD[a] =   Standard Deviation of returns on Chevron

Information Ratio Comparison

Chevron Corporation is rated below average in information ratio category among related companies. It is currently under evaluation in maximum drawdown category among related companies .
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 Chevron to competition
Chevron Corporationration, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. more
NameChevron Corporation
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
BBB+Good
InstrumentUSA Stock Stocks Directory
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number00093410.0
ISINUS1667641005
CUSIP166764100
CurrencyUSD - US Dollar