Industry allocation

(redirected from Industry Diversification)

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.
Mentioned in ?
References in periodicals archive ?
In her remarks, the Vice President of Worldwide Public Sector for AWS highlighted that Bahrain National Day offers an opportunity to acknowledge His Majesty King Hamad's vision, which has guided the Kingdom to a position of leadership across the world Carlson praised Bahrain's commitment to increasing industry diversification and building the workforce for tomorrow, while recognising the potential of cloud computing to deliver sustainable development in the Kingdom and wider region.
He was also involved with R&D and product management of Abaqus (finite element analysis), and has experience in strategic planning, acquisitions and industry diversification.
fiscal spending of the Sugar Industry Diversification Foundation, while improving oversight of public corporations and fiscal management of the Nevis Island Administration.
The indices are composed of 30 infrastructure-related stocks subject to country and industry diversification filters weighted according to inverse volatility.
While HNW investors tend to be well-diversified across asset classes and geographies, industry diversification is equally important - something wealth managers should discuss with their clients.
The new deals followed Transguard's efforts towards vertical industry diversification and expanding into the Abu Dhabi market.
He thanked the Sugar Industry Diversification Fund (SIDF), who played a key funding role in launching the street lighting program and to technology company Speedtech Energy, who are responsible for the manufacture of the bulbs.
Through the move, Pacific Premier Bancorp gains a robust position in an attractive niche market which will provide further geographic and industry diversification within its loan portfolio, the buyer's CEO, Steven Gardner, said.
This Company emphasizes industry diversification which provides substantial protection against downturns in any given cycle.
The initial actions identified as per consultation with stakeholders include evaluation and management of pre- and post-peak natural gas and petroleum production and processing and fostering oil and gas industry diversification through the development of by-product industries.
The business can grow to twice the size (assuming each industry niche is of equal size) and enjoy meaningful industry diversification.
The target result of that mission is local and regional economic development, new job creation and industry diversification.

Full browser ?