Taiwan Semiconductor Information Ratio
| TSFA Stock | | | EUR 356.50 19.50 5.79% |
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 Taiwan Semiconductor's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
At 0.1442, Taiwan Semiconductor's Information Ratio indicates positive but modest excess return per unit of tracking risk. Taiwan Semiconductor has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.1442 | |
Information Ratio Relative To Other Indicators
The chart below plots Information Ratio against Maximum Drawdown for Taiwan Semiconductor 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.
Taiwan Semiconductor records a Information Ratio of
0.14 and a Maximum Drawdown of
10.30 , yielding roughly
71.41 units of Maximum Drawdown per Information Ratio. This indicates Maximum Drawdown substantially exceeds Information Ratio for Taiwan Semiconductor.
Methodology, Assumptions & Data Sources
Taiwan Semiconductor's Information Ratio currently stands at 0.1442. Information Ratio for Taiwan Semiconductor is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Taiwan Semiconductor operates in the information technology sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. 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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