The Information Ratio evaluates active management skill. It measures the excess return (Active Return) generated by an investment relative to a benchmark, divided by the volatility of those excess returns (Tracking Error).
A high Information Ratio indicates that a manager is consistently beating the benchmark without taking on erratic, unpredictable deviations from it. An IR of 0.5 is considered good, while > 1.0 is exceptional.
On StressTest.pro, the Information Ratio tells you if an actively tilted portfolio strategy was genuinely worth the deviation from a simple broad-market passive index.