Equity Residential Information Ratio
| EQR Stock | | | USD 65.34 0.17 0.26% |
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 Equity Residential's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
The Information Ratio of 0.083 for Equity Residential indicates positive but modest excess return per unit of tracking risk. Equity Residential has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.083 | |
Information Ratio Peers Comparison
The peer group averages 0.04 for Information Ratio, with Equity Residential at 0.083 falling above that level. Readings span -0.0349 (Annaly Capital Management) to 0.0948 (Invitation Homes). Equity Residential's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Information Ratio Relative To Other Indicators
The chart below plots Information Ratio against Maximum Drawdown for Equity Residential 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.
Equity Residential's Information Ratio reads
0.08 while Maximum Drawdown reads
6.11 , a
73.63 ratio between the two. This indicates Maximum Drawdown substantially exceeds Information Ratio for Equity Residential.
Methodology, Assumptions & Data Sources
Equity Residential has a current Information Ratio reading of 0.083. The Information Ratio for Equity Residential applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Equity Residential operates in the real estate sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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