diversify

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Diversification

In risk management, the act or strategy of adding more investments to one's portfolio to hedge against the investments already in it. Ideally, this reduces the risk inherent in any one investment, and 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 level and type of diversification. There are two main types of diversification. Horizontal diversification involves investing in similar investments. Examples include investing in several technology companies or in different types of bonds. Vertical diversification involves investing in very different securities; for example, one may choose to invest in securities traded in different countries, or in both winter clothing and swimsuit companies. Both types of diversification may be as broad or as narrow as the investor chooses. In general, broader diversification equates to less risk and less return. See also: Markowitz Portfolio Theory.

diversify

To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries.
References in periodicals archive ?
Answering the research question (1), this study develops a categorical taxonomy of diversification from the index of Related Diversification (DR) and Unrelated Diversification (DU); concentrated operators (CONDIV), related diversifiers (RELDIV), unfocussed operators (UNFDIV) and unrelated diversifiers (UNRDIV).
Our star diversifiers show up again (they are utility players), plus three new prospects: Long-Short Equity, Long-Short Credit and Merger Arbitrage.
It has never been easier for investors to access gold, and with gold's role as a portfolio diversifier, a hedge against inflation and exposure to the dollar, there are several compelling arguments for investing in the yellow metal.
Dr Weinberg said: 'A variety of alternative assets are being promoted as portfolio diversifiers.
De meme, Wafasalaf vise a diversifier ses revenus par le developpement des activites de Providing (a savoir les activites de recouvrement pour compte de tiers, prestation de scoring de comportement des clients des partenaires) a travers la marque RecouvCom, et l'intensification des primes d'assurance a travers sa filiale Themis Courtage.
The Treasury reserves the right to utilize any options contemplated in this RFR as a diversifier in any custom portfolio(s) contemplated by the Plan.
Cette convention permet a la Poste Tunisienne de diversifier ses domaines d'activite.
Cette decision s'inscrit dans le cadre de la volonte de la RAM de se positionner dans une conjoncture plus strategique pour renforcer et completer l'activite de son hub a Casablanca et diversifier son offre au profit de sa clientele utilisant des lignes directes point-a-point, indique la compagnie dans un communique.
Dans son discours a l'occasion de la ceremonie de la signature le ministre mauritanien a remercie la Republique du Soudan pour l'excellente cooperation entre les secteurs de la sante, en rappelant notamment le lien entre les deux peuples derive de la religion, de l'histoire faisant allusion a ce qui a ete exprimee par les deux chefs des deux pays pour developper et diversifier la cooperation.
In addition to core investment strategies, Phoenix is known for specialized expertise in alternative investments, such as its innovative new offering, The Phoenix Diversifier, a blend of alternative investments.
Le president de Federation Interprofessionnelle du Tourisme Tunisien (Fi2T), relevant de la Confederation des Entreprises Citoyennes de Tunisie, Houcem Ben Azzouz, a indique que le secteur touristique fait encore face a des problemes structurels et necessite un bon diagnostic pour le promouvoir, mettant en exergue l'imperatif de mettre en place un plan d'action pour diversifier le produit touristique.
beaucoup moins que]Notre partenariat avec la BEI vient conforter la strategie adoptee par notre Groupe au cours des dernieres annees visant a renforcer et diversifier nos capacites dans des secteurs en pleine croissance et a poursuivre parallelement notre integration[beaucoup plus grand que], a declare Rita Maria Zniber, PDG de Diana Holding.