What is Tracking Error?
Tracking error is the difference between pricing a position or portfolio and quality pricing. This is often in the context of hedge funds, mutual funds or exchange traded funds (ETFs) that are performing poorly and resulting in unexpected gains or losses.
- Tracking error is the actual performance difference between a position (usually the entire portfolio) and the same benchmark.
- Tracking errors can be seen as an indicator of the appropriate level of fund management activity and risk.
- Evaluating portfolio managers' past tracking errors can provide an indication of the level of risk control baseline that managers can manage in the future.
Tracking Error can be defined as, Active portfolio risk. Determines the annual standard deviation of additional profits between portfolio and quality.
Literal Meanings of Tracking Error
Meanings of Tracking:
Maintain a constant frequency difference between two or more connected circuits or components.
Vehicle wheel orientation.
This exercise divides students into age-appropriate, learnable groups.
Sentences of Tracking
The text describes devices and methods for tracking tracking using marker edge detection in the Marker Edge storage system.
Japan hardly allows supervision or training before high school
Meanings of Error:
Synonyms of Error
fallacy, delusion, mistake, misconception