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).
This is our playoff team of diversifiers: Managed Futures, Global Macro, Market Neutral and Multicurrency.
Le seminaire a debute samedi dernier en presence du ministre de la Communication, Hamid Grine, qui a rappele que les journalistes sportifs ont de [beaucoup moins que] grandes capacites, mais doivent diversifier leurs connaissances pour etre polyvalents et performants [beaucoup plus grand que].
C'est l'objet meme des discussions, diversifier les echanges commerciaux en aidant l'Algerie a exporter ses produits, notamment agroalimentaires, vers ce pays.
Le ministre de l'Industrie et des Mines, Abdesselam Bouchouareb, et le chef de division du FMI charge des pays maghrebins, Jean-Francois Dauphin, ont evoque, hier, les reformes engagees par l'Algerie pour diversifier son economie dans un contexte de chute des prix du petrole.
[beaucoup moins que] La Guinee a beaucoup a apprendre de la Turquie et dans tous les domaines, mais aussi a beaucoup recevoir des operateurs turcs [beaucoup plus grand que], tandis que [beaucoup moins que] les [beaucoup moins que] partenaires [beaucoup plus grand que] turcs [beaucoup moins que] ont besoin de developper et diversifier leurs activites chez nous [beaucoup plus grand que], a-t-il affirme lors d'une conference de presse commune.