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Investing Glossary:
Information Coefficient (IC)
Copyright 2012,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Information Coefficient (IC)
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| Definition: |
| The Correlation between predicted and actual Stock returns, sometimes used to measure the Contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship.
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