Tracking Error


Tracking Error

A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge or mutual fund that did not work as effectively as intended, creating an unexpected profit or loss instead.

Tracking errors are reported as a "standard deviation percentage" difference. This measure reports the difference between the return an investor receives and that of the benchmark he or she was attempting to imitate.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Tracking error — In finance, tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked. It measures the standard deviation of the difference between the portfolio and index returns.Many portfolios are managed to a… …   Wikipedia

  • Tracking Error — Der Tracking Error (kurz TE) ist die Standardabweichung der Differenzrendite zwischen einem Portfolio und einer Benchmark (ausgedrückt in %) über einen bestimmten Beobachtungszeitraum und somit im Speziellen ein Maß für die Abweichung der… …   Deutsch Wikipedia

  • Tracking error — La tracking error est une mesure de risque utilisée en gestion d actifs dans les portefeuilles indiciels ou se comparant à un indice de référence. Elle représente l écart type de la série des différences entre les rendements du portefeuille et… …   Wikipédia en Français

  • tracking error — In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio. Bloomberg Financial Dictionary Indicator measuring the volatility of the return on a portfolio relative to… …   Financial and business terms

  • tracking error —   Nel contesto di una strategia volta puramente a replicare un indice o un portafoglio di riferimento, senza ricercare una performance differenziale, è la differenza tra il rendimento del portafoglio o del fondo e quello dell indice.   Misura la… …   Glossario di economia e finanza

  • tracking error — atitikties paklaida statusas Aprobuotas sritis investicinių paslaugų teikimas apibrėžtis Portfelio investicijų grąžos ir lyginamojo dydžio (rinkos indekso ar kt.) grąžos atitikties tikslumo rodiklis, dažnai apskaičiuojamas kaip investicijų,… …   Lithuanian dictionary (lietuvių žodynas)

  • tracking error — skalės paklaida statusas T sritis Standartizacija ir metrologija apibrėžtis Įvairius skalės taškus atitinkantis skirtumas tarp matuoklio rodmens ir proporcingai pakeisto matuojamojo dydžio vertės, kai matuoklis buvo sureguliuotas taip, kad nebūtų …   Penkiakalbis aiškinamasis metrologijos terminų žodynas

  • tracking error — skalės paklaida statusas T sritis fizika atitikmenys: angl. tracking error vok. Skalafehler, m rus. погрешность шкалы, f pranc. erreur d’échelle, f …   Fizikos terminų žodynas

  • Tracking error — In an indexing strategy, the difference between the performance of the benchmark and the replicating portfolio. The New York Times Financial Glossary …   Financial and business terms

  • tracking error — Fin the deviation by which an index fund fails to replicate the index it is aiming to mirror …   The ultimate business dictionary


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