Concepts
Diversification
The practice of reducing portfolio risk by combining assets with imperfect correlation, so that losses in one holding are offset by gains in another.
Related Terms
Articles about this term
Risk Parity: Balancing Portfolios by Risk, Not Capital
11 min
The Science of Diversification: From Markowitz to Modern Portfolios
13 min
Correlation Breakdown During Crises: Why Diversification Fails When You Need It Most
12 min
Currency Hedging for Global Portfolios
11 min
The Black-Litterman Model: Blending Views with Market Equilibrium
12 min