Definitions for "tracking error"
When using an indexing or any other benchmarking strategy, the amount by which...
Defined as the annualised volatility of the alpha or active return (the difference between the fund return and benchmark return).
The degree of proximity with which an actual portfolio follows a representative market . Technically the tracking error is represented by the standard deviation of the differences in return between the portfolio and the . Tracking error measures the likelihood (based on historical data) of actual returns differing from returns.
Keywords:  trade
Trade Trade away
Keywords:  risk, active, see
See active risk.