Two Harbors Information Ratio
| TWO Stock | | | USD 12.55 0.17 1.37% |
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 Two Harbors's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
At 0.0487, Two Harbors's Information Ratio indicates positive but modest excess return per unit of tracking risk. Two Harbors has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0487 | |
Information Ratio Peers Comparison
Relative to peers, Two Harbors's Information Ratio is above the group average of 0.03. Peer readings range from -0.0564 (Orchid Island Capital) to 0.109 (Chimera Investment), reflecting wide dispersion across the sector. Two Harbors'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 Two Harbors 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.
Two Harbors shows nearly
319.66 of Maximum Drawdown per unit of Information Ratio (
0.05 versus
15.57 ). This indicates Maximum Drawdown substantially exceeds Information Ratio for Two Harbors.
Methodology, Assumptions & Data Sources
The current Information Ratio for Two Harbors is 0.0487. Information Ratio for Two Harbors is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Two Harbors operates in the real estate 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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