Linked from

The 17 pages that link to Diversification, each with the reason it gives.

• CorrelationRelated: Low or negative correlations between asset returns can reduce portfolio volatility.

• Index fundRelated: Broad index funds can diversify exposure across many securities through one investment.

• Financial marketRelated: Markets provide access to assets with different risk and return characteristics.

• Portfolio optimizationRelated: Optimization uses imperfect co-movement among assets to manage aggregate risk.

• Sovereign wealth fundRelated: Diversification helps protect public wealth from concentrated market and commodity shocks.

• Mutual fundRelated: Pooling lets a fund hold a broader portfolio than many investors could assemble alone.

• Harry MarkowitzRelated: Markowitz formalized how combining imperfectly correlated assets can reduce portfolio risk.

• Abu Dhabi Investment AuthorityRelated: Diversification helps ADIA manage risks across its global portfolio.

• Personal financeRelated: Diversification can limit the damage from a poor outcome in a single investment.

• Arbitrage pricing theoryRelated: Diversification helps make asset-specific return noise negligible in APT’s pricing argument.

• Bullion coinRelated: Investors may hold bullion coins to diversify beyond financial securities.

• Investment fundRelated: Pooling can make it practical to hold a broader mix than many investors could buy individually.

• James TobinRelated: Tobin’s portfolio theory helped establish diversification as a central problem in formal investment analysis.

• Lee Byung-chulRelated: Lee repeatedly moved Samsung into new sectors, including textiles, electronics, and finance.

• John C. BogleRelated: Broad index funds diversify across many companies through a single investment.