So, the tracking error
dynamics equation can be reduced to the equation below:
We have focused on following characteristics of the tracking portfolios that are important in terms of the index tracking: profitability and volatility of the portfolio, value of Information Ratio, correlation between the returns of the tracking portfolio and the returns of the tracked index, correlation between the returns of the tracked index and the tracking error
, and tracking error
This indicates that the coolant tracking error
In other words, with the learning control schemes, the tracking errors
in any phase of the time domain, either in the transient phase or in the steady state, can be made to be within the specified error bound.
Figure 8 demonstrates that, due to the differences in the deadzone parameters, vibration appears while controlling these cylinders and the tracking error
Otra medida especialmente relevante en la gestion de carteras es el tracking error
, ya que es un indicador util a la hora de analizar fondos que replican indices, valorando el riesgo relativo asumido por el gestor al separarse, en mayor o menor medida, de su cartera de referencia.
As the square paths are intrinsically different form their circular counterparts, the tracking errors
will also differ.
Investors who are seeking alpha and have little concern about tracking error
may choose to overweight strategic beta strategies.
The control law assures the stability and the model tracking error
tends to zero.
Let the definition of the tracking error
on XY-plane is calculated as:
Sarah Wang, managing director of EM structuring Asia, Barclays Plc, said, 'The replication strategy breaks down the source of EM returns into risk premium components in a simple and transparent framework, and achieves high correlation and low tracking error
to the benchmark index based on historical data.
The simplest approach is to assess each potential stock, to measure the index tracking error
, and then select those stocks that minimize this deviation.