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

Information architecture

Information architecture

The flow of pages and data on a website. The intentional design, structure and organization of a website so as to provide information efficiently.


Information costs

Information costs

Transactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs.


Information Ratio

Information Ratio

The ratio of annualized expected residual return to residual risk. A central measurement for active management, value added is proportional to the square of the information ratio.


Technical Information

Technical Information

Information related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only.


Information Agent

Information Agent

Agent whose primary task is to disseminate and explain the details of capital transactions.


Further Suggestions

Informational efficiency
price sensitive information
London Market Information Link
Information asymmetry
Intermarket Surveillance Information System (ISIS)
Information services
Asymmetric information
Expected value of perfect information
Incomplete information
Limit order information system
Information content effect
For your information (FYI)
Informational efficiency
insider information
Asymmetric information
Statement of Additional Information (SAI)
Complete information
Fundamental Information
Insider information
Nonpublic information


 
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