Watsco Information Ratio
| WSO Stock | | | USD 432.06 11.38 2.71% |
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 Watsco's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
Watsco has a Information Ratio of 0.0347, indicating positive but modest excess return per unit of tracking risk. Watsco has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0347 | |
Information Ratio Peers Comparison
Watsco falls above the -0.06 peer average for Information Ratio. Applied Industrial Technologies leads at 0.1346 while Allegion PLC registers the lowest at -0.2218. Watsco'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 Watsco 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.
Watsco shows nearly
262.27 of Maximum Drawdown per unit of Information Ratio (
0.03 versus
9.10 ). This indicates Maximum Drawdown substantially exceeds Information Ratio for Watsco.
Methodology, Assumptions & Data Sources
Watsco has a current Information Ratio reading of 0.0347. Information Ratio for Watsco 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. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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