tracking error

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Tracking error

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

Tracking Error

An excessive deviation between an investment or portfolio and some benchmark. It is commonly used with respect to mutual funds, hedges, or other investment vehicles designed to track some index or other benchmark. If the portfolio's performance falls short of the benchmark, especially by a large amount, there is said to be a tracking error; an investor or investment company may wish to re-evaluate how it puts together the portfolio.

tracking error

The difference in the return earned by a portfolio and the return earned by the benchmark against which the portfolio is constructed. For example, if a bond portfolio earns a return of 5.15% during a period when the portfolio's benchmark (say, for example, the Lehman Brothers Index) produces a return of 5.06%, the tracking error is .09%, or 9 basis points.
References in periodicals archive ?
k](t) is the resulting tracking error, the control design problem is to construct a control law (or algorithm) expressed, for generality, as a functional relationship typified by the equation as follow [22]:
It is proved that tracking errors of the state and the upper bound of the uncertainties converge to the neighborhoods of the origin exponentially.
x] is the constant matrix chosen as a proportional feedback of the tracking error vector e:
After the SMC implementation, the path tracking is evaluated the tracking error as follows:
With the overall control, the tracking error model rests:
Let the definition of the tracking error on XY-plane is calculated as:
The average absolute tracking errors from 08:00 to 20:00 were 0.
Besides, when the number of sensor nodes is larger than 20 (when sampling times), the tracking errors have not yet been sensitive with the sensing resolution.
Treasury indexes that rebalance daily offer the advantages of reduced tracking errors when rebalancing portfolios and provide a more accurate reflection of current market conditions.
Pre-labeled slides, plates, tubes, vials, and containers are sequentially ordered to eliminate tracking errors or duplicates, and the labels can be permanently affixed to surfaces to guarantee performance in harsh environments.
Cross-validation with other metering equipment is likewise improved, preventing tracking errors that can arise with less precise repeatabilities.