Facebook Information Ratio

Facebook Inc -- USA Stock  

USD 178.74  0.26  0.15%

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Facebook Inc has current Information Ratio of 0.0524. 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.
Facebook 
INFOR 
 = 
ER[a] - ER[b] 
STD[a] 
 = 
0.0524
ER[a] =   Expected return on investing in Facebook
ER[b] =   Expected return on market index or selected benchmark
STD[a] =   Standard Deviation of returns on Facebook

Information Ratio Comparison

Facebook Inc is rated # 5 in information ratio category among related companies. It is rated # 3 in maximum drawdown category among related companies reporting about  120.16  of Maximum Drawdown per Information Ratio. The ratio of Maximum Drawdown to Information Ratio for Facebook Inc is roughly  120.16 
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.
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Facebook, Inc. operates as a mobile application and Website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide. more
NameFacebook Inc
Analyst Consensus
Piotroski F Score
Macroaxis Advice
InstrumentUSA Stock Stocks Directory
RegionNorth America
ExchangeNASDAQ
CIK Number01326801.0
ISINUS30303M1027
CUSIP30303M102
CurrencyUSD - US Dollar