Industry allocation

Industry allocation

Investment of certain proportions of a portfolio in certain industries. Sometimes called sector allocation.

Industry Allocation

The act or practice of including securities in different industries in one's portfolio. This is done to reduce systemic risk. For example, if one includes both Industry A and Industry B stocks in one's portfolio, and most Industry A companies go bankrupt, this will not necessarily affect Industry B stocks. Industry allocation thus increases the possibility of making a profit, or at least avoiding a loss. This may also reduce the expected return on a portfolio, but it depends on the level and type of diversification. In general, the broader the industry allocation, the less risk and the less return. See also: Horizontal diversification, Vertical diversification.
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The industry allocation of foam over the next several weeks will affect our just-in-time manufacturing output in the U.
Kirklees planning officers' report: "The fact that the residential development would help facilitate development of the business and industry allocation, with the opportunity for employment use to be delivered on the balance of the allocation, and for the economic benefits that this would bring to be realised, also weighs in favour of the development proposed.
NEW YORK, June 6, 2013 /PRNewswire/ -- In a new report produced for S&P Capital IQ's LCD group, Wall Street leveraged finance specialist, Marty Fridson, offers investors fresh insights and recommendations on industry allocation for active managers.
The industry allocation uses MSCI's industry definitions for the convenience of comparison.
Sowerby Bridge: 840 new homes, small scale office development for 60 jobs and industry allocation for 130 jobs.