Hanover Insurance Information Ratio
| THG Stock | | | USD 180.33 2.79 1.57% |
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 Hanover Insurance's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
At 0.0477, Hanover Insurance exhibits positive but modest excess return per unit of tracking risk in Information Ratio. Hanover Insurance has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0477 | |
Information Ratio Peers Comparison
The peer group averages 0.02 for Information Ratio, with Hanover Insurance at 0.0477 falling above that level. Readings span -0.1044 (RLI Corp) to 0.1456 (The Travelers Companies). Hanover Insurance'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 Hanover Insurance 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.
Hanover Insurance records a Information Ratio of
0.05 and a Maximum Drawdown of
4.21 , yielding roughly
88.23 units of Maximum Drawdown per Information Ratio. This indicates Maximum Drawdown substantially exceeds Information Ratio for Hanover Insurance.
Methodology, Assumptions & Data Sources
Hanover Insurance has a current Information Ratio reading of 0.0477. Information Ratio for Hanover Insurance is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Hanover Insurance operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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