Tracking error, information ratio & how long proof takes calculator

And how many years proof actually takes.

Interactive: tracking error, information ratio & how long proof takesMedium

Portfolio return % p.a. Benchmark return % p.a. Tracking error % p.a. Track record (years)

Active return: —
Information ratio: —
t-statistic so far: —
Years needed for t = 2: —
Reading: —

Even "statistically meaningful" here is in-sample: the manager was chosen because the record looked good, which is exactly the selection effect the t-statistic cannot see. Survivorship in fund databases pushes the same way.

The idea behind it

This calculator belongs to Risk Measures, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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The same in full — six points, and why each one matters

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