NEW WORLD Information Ratio
| NWFFX Fund | | | USD 104.92 -0.67 -0.63% |
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 NEW WORLD's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
NEW WORLD registers a Information Ratio of 0.0631, reflecting positive but modest excess return per unit of tracking risk. NEW WORLD has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0631 | |
Information Ratio Peers Comparison
Among sector peers, NEW WORLD's Information Ratio of 0.0631 is below the 0.08 group average. The range runs from 0.0261 (American Mutual Fund) to 0.1006 (New World Fund). NEW WORLD'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 New World 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.
NEW WORLD's Maximum Drawdown of
5.96 runs about
94.43 times its Information Ratio of
0.06 . This indicates Maximum Drawdown substantially exceeds Information Ratio for NEW WORLD.
Methodology, Assumptions & Data Sources
The current Information Ratio for NEW WORLD is 0.0631. Information Ratio for NEW WORLD is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. NEW WORLD operates in the international equity funds sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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