IC, information coefficient - A correlation value that measures the relatinoship between a variable's predicted & actual values, used for evaluating forecasting skill.
In our active quant strategies, an IR of .10 in considered excellent. An IR of .05 would be considered good.
IR, information ratio - A measure of the risk-adjusted return of a financial security (or asset or portfolio), defined as expected active return divided by tracking error. Top-quartile investment managers typically achieve information ratios of about one-half.
tracking error - the standard deviation of the active return
