In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio.

When using an indexing or any other benchmarking strategy, the amount by which the performance of the portfolio differed from that of the benchmark. In reality, no indexing strategy can perfectly matc [..]

The standard deviation of the differences between a portfolio's returns and its benchmark's returns.Synonyms: Active risk Tracking risk Related Terms: Active risk Tracking risk 

The deviation of a dependent variable with respect to a reference function.

Definition When using an indexing or any other benchmarking strategy, the amount by which the performance of the portfolio differed from that of the benchmark. In reality, no indexing strategy can per [..]

A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark.

Refers to the difference in the return of a portfolio to its benchmark.

In an indexing strategy, the difference between the performance of the benchmark and the replication portfolio.

Tracking error is the time interval between the set and actual positions when traversing a vector. What causes tracking error? Because a scanner's mass inertia hinders it from instantaneously rea [..]

In music, it is common to have multiple concurrent lines, parts or voices. Listeners are limited in their abilities to track multiple concurrent lines simultaneously. For textures consisting of identical timbres, even expert listeners have difficulty hearing more than three concurrent lines at the same time. Beyond three-voice textures, tracking co [..]

A measure, expressed as a percentage, of the deviation of the fund return from the benchmark return over a given period of time. The more passively the investment fund is managed, the smaller the tracking error.

The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.

A measure of how closely an investment portfolio’s price movements reflect that of its benchmark.

A measure of how closely an investment portfolio follows the index against which it is benchmarked. See also predicted tracking error, realised tracking error, ex ante and ex post.

A measure of how closely an investment portfolio follows the index against which it is benchmarked. See also predicted tracking error, realised tracking error, ex ante and ex post.

Volatility of the excess return. Measures how far the portfolio returns are likely to vary from the benchmark returns

The difference in movement of a playback stylus across the face of a phonograph record compared with the cutting stylus on the disc recording machine.

In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio.