Investment

Error de Seguimiento

A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

Quick answer: A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

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Quick answer

A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

Why it matters

Error de Seguimiento matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Error de Seguimiento?

In this glossary, Error de Seguimiento refers to: A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

How is Error de Seguimiento used in finance?

In finance communication, this term appears in contexts such as: "Un error de seguimiento bajo indica que los rendimientos del portafolio siguen de cerca al índice de referencia; uno alto, gestión activa."

Why does Error de Seguimiento matter in finance?

Error de Seguimiento matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Error de Seguimiento?

Error de Seguimiento is mainly used by Financial Analysts, Bankers, and Traders.

What category does Error de Seguimiento belong to?

In this glossary, Error de Seguimiento is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

Operational example

A low Tracking Error indicates the portfolio’s returns closely follow its benchmark, while a high value signals significant active management.

Localized term

Error de Seguimiento

Localized example

Un error de seguimiento bajo indica que los rendimientos del portafolio siguen de cerca al índice de referencia; uno alto, gestión activa.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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