Madison Covered Information Ratio
| CVRD ETF | | | 18.64 0.01 0.05% |
The Information Ratio measures excess return (alpha) per unit of tracking error relative to a benchmark. Unlike the Sharpe Ratio, which uses total volatility, the Information Ratio isolates only the variability of the alpha component — the return attributable to active decisions rather than passive market exposure. Below is Madison Covered's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
With Information Ratio at 0.026, Madison Covered shows positive but modest excess return per unit of tracking risk. Madison Covered has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.026 | |
Information Ratio Peers Comparison
Among sector peers, Madison Covered's Information Ratio of 0.026 is below the 0.08 group average. The range runs from -0.0263 (Collaborative Investment Series) to 0.1663 (SGI Enhanced Nasdaq 100). Madison Covered's risk-adjusted return trails the peer average, indicating less efficient compensation for the risk incurred.
Information Ratio Relative To Other Indicators
The chart below plots Information Ratio against Maximum Drawdown for Madison Covered and its peers. Each point represents one equity — position along the horizontal axis shows Information Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
With Information Ratio at
0.03 and Maximum Drawdown at
2.45 , Madison Covered shows a
94.06 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Information Ratio for Madison Covered.
Methodology, Assumptions & Data Sources
Madison Covered has a current Information Ratio reading of 0.026. The Information Ratio for Madison Covered is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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