Information Coefficient (IC)

 

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Information Coefficient (IC)

The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship.



Information Coefficient (IC)

Similar Matches

Limit order information system

Limit order information system

The electronic system supplying information about securities traded on participating exchanges so that the best securities prices can be found.


Asymmetric information

Asymmetric information

The failure of two parties to a transaction to have the same relevant information. Examples are buyers who know less about product quality than sellers, and lenders who know less about likely default than borrowers. Both are common in international markets.


Information services

Information services

Organizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position.


Informational efficiency

Informational efficiency

The degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset.


Asymmetric information

Asymmetric information

Information that is known to some people but not to other people.


Further Suggestions

Expected value of perfect information
Informational efficiency
Information costs
London Market Information Link
Fundamental Information
Insider information
Intermarket Surveillance Information System (ISIS)
Information architecture
Incomplete information
Information Agent
price sensitive information
Information content effect
Information asymmetry
Technical Information
Complete information
Nonpublic information
Statement of Additional Information (SAI)
For your information (FYI)
Information Ratio
insider information


 
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