Rio Tinto Information Ratio
| RIO Stock | | | USD 103.11 -2.40 -2.27% |
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 Rio Tinto's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
Rio Tinto's Information Ratio of 0.1356 reflects positive but modest excess return per unit of tracking risk. Rio Tinto has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.1356 | |
Information Ratio Peers Comparison
Rio Tinto falls above the 0.0 peer average for Information Ratio. BHP Group Limited leads at 0.1529 while Sherwin Williams Co registers the lowest at -0.0954. Rio Tinto'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 Rio Tinto 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.
Rio Tinto shows nearly
59.00 of Maximum Drawdown per unit of Information Ratio (
0.14 versus
8.00 ). This indicates Maximum Drawdown substantially exceeds Information Ratio for Rio Tinto.
Methodology, Assumptions & Data Sources
Rio Tinto has a current Information Ratio reading of 0.1356. The Information Ratio for Rio Tinto applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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